Question: Consider the following two projects with cash flows in dollars ($): Year o Year 1 Year 2 Year 3 Year 4 Cash Cash Cash Cash

Consider the following two projects with cash flows in dollars ($):

Consider the following two projects with cash flows in dollars ($): Year o Year 1 Year 2 Year 3 Year 4 Cash Cash Cash Cash Cash Discount Project Flow Flow Flow Flow Flow Rate -100 40 50 60 NA .15 B -73 30 30 30 30 .15 Assume that projects A and B are mutually exclusive. The correct investment decision and the best rationale for that decision is to: invest in project A since NPVB IRRA. invest in project B since NPVB > NPVA invest in project A since NPVA > 0. OB OD

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