Question: Question 1 1 points Save Answer A local firm is evaluating two mutually exclusive projects Project A and Project B. The initial cash outflow is

 Question 1 1 points Save Answer A local firm is evaluating

Question 1 1 points Save Answer A local firm is evaluating two mutually exclusive projects Project A and Project B. The initial cash outflow is $50,000 for each project. Project A will generate cash inflows of $15,625 at the end of each of the next five years. Project B will generate a single cash inflow of $99.500 at the end of the fifth year. The required rate of return for this firm is 10 percent. This firm should accept: Project B because it has no cash inflows in the first four years of its life. b. Project A because it will yield cash every year for five years. Project B because it has a higher net present value (NPV). O d. Project A because it will generate cash in the initial years of its life e. A because it has a positive net present value (NPV)

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