Question: ICO Company must decide between two mutually exclusive projects. The following information describes the cash flows of each project. Year Project A Project B 0

ICO Company must decide between two mutually exclusive projects. The following information describes the cash flows of each project. Year Project "A" Project "B" 0 -$20,000 -$24,000 1 10,000 10,000 2 8,000 10,000 3 6,000 10,000 a. Assume that 15% is the appropriate required rate of return. What decision should the firm make about these two projects? Select one: a. Reject BOTH projects as decreasing shareholder wealth. b. Reject project A and Accept project B c. Accept BOTH projects as increasing shareholder wealth. d. Reject project B and Accept project A

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