Question: If the two projects are mutually exclusive (can invest in at most one project), which project, if any, should the manager invest in if the

 If the two projects are mutually exclusive (can invest in at

If the two projects are mutually exclusive (can invest in at most one project), which project, if any, should the manager invest in if the opportunity cost of capital is 8%? Answer: [ Select ] ["Indifferent between the two projects", "Invest in neither project", "Project B", "Project A"]

If the two projects are mutually exclusive (can invest in at most one project), which project, if any, should the manager invest in if the opportunity cost of capital is 5%? Answer: [ Select ] ["Invest in neither project", "Project B", "Project A", "Indifferent between the two projects"]

If the two projects are mutually inclusive (can invest in at most two projects), what is the approximate change in the companys value if the opportunity cost of capital is 8%? Answer:

A manager in a company is faced with two projects: Project A and Project B. Given the cash flows from these projects (not shown in this question), the manager was able to plot the NPV's of these projects on the opportunity cost of capital (r), shown in the following figure

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