Question: please explain. Thank you! You are considering two projects. Project A has cash flows of $125,000,$51,400,$52,900, and $63,300 for Years 0 to 3 , respectively.
You are considering two projects. Project A has cash flows of $125,000,$51,400,$52,900, and $63,300 for Years 0 to 3 , respectively. Project B has cash flows of $85,000,$23,100,$28,200, and $69,800 for Years 0 to 3 , respectively. Project A has a required return of 9% while Project B's required return is 11\%. If your company only has enough capital to invest in one of these projects, which of the following statements is true? A) Accept Project A because A's NPV is higher B) Accept Project B because B's NPV is higher C) Accept Project A because A's IRR is higher D) Accept Project B because B's required return is higher E) Unable to decide with the information given
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