Question: QUESTION 1 A firm is considering the following two mutually exclusive projects. The required return on each project is 14 percent. Which project should be

QUESTION 1 A firm is considering the following two mutually exclusive projects. The required return on each project is 14 percent. Which project should be accepted and what is the best reason for that decision? Year Project A Project B 0 -546 000 $46,000 1 25.000 11.000 18.000 19.000 3 16,000 Project B because it has the highest not present value Project A because it pays back faster (PBA 2 1875 years) Project B because it has the highest internal rate of retum Project A because it has the highest net present value NPVA-5579 7843) Project because it pays back faster

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