Question: Projects A and B are Mutually exclusive. The required return is 10% Year Cash Flow (A) Cash FLow (B) 0 -20,000 -175,000 1 10,000 80,000

Projects A and B are Mutually exclusive. The required return is 10%

Year Cash Flow (A) Cash FLow (B)
0 -20,000 -175,000
1 10,000 80,000
2 11,000 35,000
3 11,000 125,000

Calculate NPV for project B

a) 65,000

b) 5,315.55

c) 4,868.52

d) 10,000

e) 20,567.24

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