Question: Question #5 Exec Air Daytona (EAD) is a fixed-base operator (FBO) providing aeronautical services such as fueling, hangar space, tiedown and parking, aircraft rental, and

Question #5 Exec Air Daytona (EAD) is a fixed-base operator (FBO) providing aeronautical services such as fueling, hangar space, tiedown and parking, aircraft rental, and aircraft Page 2 of 3 maintenance at a regional airport. EAD is considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 9.25 percent for Project A and 8.75 percent for Project B. Based on the following returns, which project should EAD accept and why? Year Project A Project B 0 ($50,000) ($150,000) 1 $20,000 75,500 $30,000 $85,000 $12,000 SO 2 3

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