Question: Suppose the two projects describe below, our mutually exclusive in our subject to a hurdle rate of 8%. If the company is not practicing capital
Suppose the two projects describe below, our mutually exclusive in our subject to a hurdle rate of 8%. If the company is not practicing capital rationing, which one or ones should be accepted?
| Years | 0 | 1 | 2 | 3 | 4 | 5 |
| Project A | -2500 | 1250 | 800 | 750 | 500 | 50 |
| Project B | -2500 | 100 | 200 | 300 | 850 | 2750 |
You can choose more than one answer.
A.
B.
C.
D.
*please explain thoroughly, and include a break down of the calculations when using a calculator I would be very thankful*
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