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 -$54,419 -$26,295 1 $10,322 $7,286 2 $9,392 $16,817 3 $21,091 $28,094 4 $15,933 $17,066 The companys weighted average cost of capital is 11.3 percent (WACC = 11.3). 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?
$29,324.46; Yes
$27,324.46; Yes
$23,324.46; No
$25,324.46; Yes
$27,324.46; No
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