Question: Sarah is evaluating two mutually exclusive capital budgeting projects that have the following characteristics: Cash Flows Year Project $(5,000) 0 Project R $(5,000) 6,000 6,000

Sarah is evaluating two mutually exclusive capital budgeting projects that have the following characteristics: Cash Flows Year Project $(5,000) 0 Project R $(5,000) 6,000 6,000 0 10,000 1) Calculate NPV of each project if the firm's required rate of return (1) is 10 percent. 2) which project should be purchased

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