Question: PROBLEM 1 (Questions 21-23) Consider the following two mutually exclusive projects: C 0 C 1 C 2 C 3 Project A -100 0 0 +140

PROBLEM 1 (Questions 21-23) Consider the following two mutually exclusive projects: C0 C1 C2 C3 Project A -100 0 0 +140 B -100 +60 +60 0

What project would you accept if the rate of return was 10%?

a. Project A b. Project B c. Since the NVP profile curve is downward sloping, either project is acceptable d. A and C e. None of the above

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