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 -$34,139 -$36,502 |
| 1 $10,614 $6,107 |
| 2 $12,162 $8,946 |
| 3 $21,200 $42,600 |
| 4 $17,189 $18,174 |
| The companys weighted average cost of capital is 5.7 percent (WACC = 5.7). 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? |
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