Question: The cash flows for two mutually exclusive projects are shown in the following table. Investors require a 7% rate of return for each project.

The cash flows for two mutually exclusive projects are shown in the

The cash flows for two mutually exclusive projects are shown in the following table. Investors require a 7% rate of return for each project. Year 0 Cash Flows: Project C (in millions) Cash Flows: Project D (in millions) -160 -160 1 -35 50 2 50 40 3 50 40 4 -20 -30 90 60 6 95 60 50

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