Question: PLEASE ANSWER A-D WITH WORK, THANK YOU! 2. Consider the following two mutually exclusive projects: Year Cash Flow A Cash Flow B 0 $-318,844 $-27,476
PLEASE ANSWER A-D WITH WORK, THANK YOU!
2. Consider the following two mutually exclusive projects:
| Year | Cash Flow A | Cash Flow B |
| 0 | $-318,844 | $-27,476 |
| 1 | $27,700 | $9,057 |
| 2 | $56,000 | $10,536 |
| 3 | $55,000 | $11,849 |
| 4 | $399,000 | $13,814 |
The required return is 15 percent for both projects.
- Based on NPV rule, Reject or Accept?
- Based on IRR rule, Reject or Accept?
- Based on PI, Accept or Reject?
- Which rule in this case would be preferred?
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