Question: QUESTION 26 Projects A and B are mutually exclusive and have an initial cost of $78,000 each. Project A provides cash inflows of 532.000 a
QUESTION 26 Projects A and B are mutually exclusive and have an initial cost of $78,000 each. Project A provides cash inflows of 532.000 a year for three years while Project B produce cash inflow of 544,400 a year for two years. Which projects) should be accepted if the discount rate is 10 percent? What if the discount rate is 12.5 percent? o A. Accept B at 10 percent and neither at 12.5 percent B. Accept neither Anor B at both discount rates Accept both at 10 percent and neither at 12.5 percent O D. Accept B at both discount rates ho oE Accept A at 10 percent and neither at 12.5 percent
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