Question: Question 6 Mutually Exclusive Projects [4 points]: Two projects being considered are mutually exclusive and have the following projected cash flows: Year Project A Project

Question 6 Mutually Exclusive Projects [4 points]: Two projects being considered are mutually exclusive and have the following projected cash flows:

Year

Project A

Project B

0

-$50,000

-$50,000

1

15,625

0

2

15,625

0

3

15,625

0

4

15,625

0

5

15,625

99,500

If the required rate of return on these projects is 10 percent, which would be chosen and why?

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