Question: question #20 Project A Project B Time 0 - 10,000 - 10,000 Time 1 5,000 4,000 Time 2 4,000 3,000 Time 3 3,000 10,000 If

question #20question #20 Project A Project B Time 0 - 10,000 - 10,000

Project A Project B Time 0 - 10,000 - 10,000 Time 1 5,000 4,000 Time 2 4,000 3,000 Time 3 3,000 10,000 If Wise Guy Inc is choosing one of the above mutually exclusive projects (Project A or Project B), given a discount rate of 10%, which should the company choose? A. Project B B. Project A O C. Neither project - both have negative NPV. OD. Both projects - both have positive NPV

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