Question 7: (15 points) (Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows:

If the appropriate discount rate on these projects is 11 percent, which would be chosen and why? (Round to the nearest cent.)

a. The NPV of Project A is:	$
b. The NPV of Project B is:	$

Which project would be chosen and why? (Select the best choice below.)

1. Cannor choose without comparing their IRRs.
2. Choose A because its NPV is higher.
3. Choose both because they both have positive NPVs.
4. Choose B because its NPV is higher.