Question: Josee is considering two mutually exclusive projects. Project A has an initial cost of $42,000.00. The cash inflows of project A are $27,000.00,$20,500.00, and $7,250.00
Josee is considering two mutually exclusive projects. Project A has an initial cost of $42,000.00. The cash inflows of project A are $27,000.00,$20,500.00, and $7,250.00 over the next three years, respectively. Project B has an initial cost of $90,000.00. The cash inflows for project B are $42,000.00,$60,000.00, and $9,368.96 over the next three years, respectively. The required rate of return is 12% for project A and 11.5% for project B. You should accept Project_. because its NPV is greater than that of the other project. a) B;$874.92 b) B;$901.81 c) A;$924.23 d) A;$921.53 e) A; $866.16
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