question 17

MULTIPLE CHOICE You are considering the following two mutually exclusive projects. The required rate of return is 10.75 percent for project A and 12 percent for project B. Which project should you accept and why? Year Project A Project B -36,000 -69,900 21,600 52,600 2 18,200 46,100 3 22,100 0 o project B; because it is the largest sized project project B; because it returns all its cash flows within years project B; because it has the largest total cash inflow project A; because it has the lower required rate of return E project A; because its NPV is about $796 more than the NPV of project B 17 of 30 20 18 21 > > 14 17 19 13 15 IKK 16 15,454 AMAY w X P 21