Project A has cash flows of ?$92,000, $49,400, $27,200, $24,500, and $30,690 for Years 0 to 4, respectively. Project B has an initial cost of $50,000 and an annual cash inflow of $20,500 for four years. The required rate of return is 18 percent. These are mutually exclusive projects. Which project(s) should be accepted or rejected?

Answer rating: 100% (QA)

Heres how we can compare the projects Project A Cash Flows Year 0 92000 Initial investment Year 1 49... View the full answer