Question: Question 16 (Mandatory) (1 point) Soved Projects A and B are mutually exclusive. The required return is 10% Year Cash Flow (A) Cash Flow (B)

Question 16 (Mandatory) (1 point) Soved 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 If you apply the PI criterion, which investment will you choose? Why? A) Both projects A and B, because Pl is greater than 0. B) Project A, because Pl is greater than 1 and higher. C) Project A, because Plis positive and higher. D) Both projects A and B, because Pl is greater than 1, E) Project B, beoguse Pi is greater than 1 and higher Previous Page Next Page Page 16 of 19

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