Question: There are two mutually exclusive projects. Both projects last for four years; require an initial investment of $1,000; and have a discount rate of 5%.

There are two mutually exclusive projects. Both projects last for four years; require an initial investment of $1,000; and have a discount rate of 5%. Project A has four equal annual cash inflows of $750 at the end of each year. Project B only has one cash inflow of $3,500 at the end of year 4. Which project(s) should you choose? (Exam 1)

Question 10 options:

Project B

Project A

Neither

Both

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