Question: PROJECT A PROJECT B TIME 0 -10,000 -10,000 TIME 1 5,000 4,000 TIME 2 4,000 3,000 TIME 3 3,000 10,000 Ifa profit-oriented firm ischoosing one

PROJECT A PROJECT B

TIME 0 -10,000 -10,000

TIME 1 5,000 4,000

TIME 2 4,000 3,000

TIME 3 3,000 10,000

Ifa profit-oriented firm ischoosing one of the above mutually exclusive projects (Project A or Project B), given a discount rate of 8%, which shouldit choose?

a. Both projects - both have positive NPV.

b. Neither project - both have negative NPV.

c. Project A

d.Project B

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