Question: Projects A and B are mutually exclusive. The required return on each project is 11 percent. Which project should you accept and what is the

Projects A and B are mutually exclusive. The required return on each project is 11 percent. Which project should you accept and what is the best reason for that decision? Project A Project B Year 0 -$15,000 -$15,000 Year 1 $ 9,000 $ 3,000 Year 2 $ 8,000 $5,000 Year 3 $5,000 $ 9,000 Year 4 $ 4,000 $11,000 Project A; because it pays back faster Project A; because it has the higher profitability index Project B; because it has the higher profitability index Project A; because it has the higher net present value Project B; because it has the higher net present value

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