Question: Question 10 (3 points) Your company is evaluating two mutually exclusive projects (A and B) that will reduce operating costs in the shipping department, and
Question 10 (3 points) Your company is evaluating two mutually exclusive projects (A and B) that will reduce operating costs in the shipping department, and you want to decide which one of them, if either, is the most desirable. The firm's required rate of return is 12.5%. It has been determined that the two projects have the following NPVs and IRRs. What should your decision be? Project A Project B NPV $25,866 $28,643 IRR 17.1% 15.9% Invest in either Project A or Project B. It does not really matter as they are both good projects. Invest in Project B Invest in Project A Don't invest in either Project. Neither of them is desirable
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