Question: Question 4 (1 point) A and B are mutually exclusive projects. The required rate of return is 12%. The cutoff period is 2.5 years. If
Question 4 (1 point) A and B are mutually exclusive projects. The required rate of return is 12%. The cutoff period is 2.5 years. If the company applies NPV period decision, which project should be recommended? Year 0 1 Cash Flow (A) $85,000 $32,400 $40,200 $36,600 Cash Flow (B) $58,000 $27,800 $ 24,200 $19,800 wN Project B because it has NPV of $3,306.26 Project B because it has NPV of $206.77 Project A because it has NPV of $ 7,817.00 Project A because it has NPV of $2,026.92 Neither of two projects is recommended
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