Question: Two mutually exclusive projects have the following NPVs and project lives. Project NPV Life Project A $6500 6 years Project B $5000 4 years If

Two mutually exclusive projects have the following NPVs and project lives.

Project

NPV

Life

Project A

$6500

6 years

Project B

$5000

4 years

If the cost of capital is 12%, which project would you accept?

A) A

B) B

C) Both A and B

D) Reject both A and B

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