Question: Question 6 1 pts The following two mutually exclusive projects are being evaluated. The firm's required rate of return is 12%. 1 Year Project A

 Question 6 1 pts The following two mutually exclusive projects are

Question 6 1 pts The following two mutually exclusive projects are being evaluated. The firm's required rate of return is 12%. 1 Year Project A Cash Flow Project B Cash Flow 0 -$85,000 -$136,000 42,500 43,350 2 42,500 43,350 3 42,500 43,350 4 43,350 5 43,350 Which of the following statements best describes projects A and B? O Both projects should be accepted because they have positive NPVs and EAAs. O Project B should be accepted because it has the highest EAA. O Project B should be accepted because it has the highest NPV. Project A should be accepted because it has the highest EAA. Neither project is acceptable

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