Question: Consider the following two projects: Project A B Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash

Consider the following two projects: Project A B Year 0 Year

Consider the following two projects: Project A B Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow - 100 40 50 60 N/A -73 30 30 30 30 Discount Rate .15 .15 Assume that projects A and B are mutually exclusive. The correct investment decision and the best rational for that decision is to: A A. O A. invest in project B since NPVB > NPV O B. invest in project A since NPVB IRRA OD. invest in project A since NPVA> O

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