Question: The NPV of two mutually exclusive projects considering different discount rates are given as follows. If the appropriate discount rate is 15%, which project would
The NPV of two mutually exclusive projects considering different discount rates are given as follows. If the appropriate discount rate is 15%, which project would you choose? Hint: you can use the NPV profile to answer this question.
Discount Rate0%20%NPV of Project A$100$20NPV of Project B$200$20Question options:
aProject A.bBoth projects A and B.cProject B.dYou are indifferent between A and B.eNone of them.
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