Question: Green Grocers is deciding among two mutually exclusive projects. The two projects have the following cash flows: Year Project A CF Project B CF 0
Green Grocers is deciding among two mutually exclusive projects. The two projects have the following cash flows: Year Project A CF Project B CF 0 -$50,022 -$37,611 1 $10,904 $7,377 2 $5,390 $8,742 3 $28,404 $36,518 4 $15,118 $15,496 The companys weighted average cost of capital is 19.8 percent (WACC = 19.8). What is the What is the net present value (NPV) of the project with the highest internal rate of return (IRR)? Should that project be accepted?
$3,200.03; No
$3,400.03; No
$3,400.03; Yes
$3,600.03; No
$3,200.03; Yes
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