Question: ] Two mutually exclusive projects have the following positive NPVs and project lives. Project NPV Life Project A $ 5 , 0 0 0 3

]Two mutually exclusive projects have the following positive NPVs and project lives.
Project NPV Life
Project A $ 5,0003 Years
Project B $ 6,5005 Years
If the cost of capital were 15 percent, which project would you accept?
Multiple Choice
Project A, because it has higher EAC
Project B, because it has higher EAC
Project A, because its NPV can be earned more quickly
Project B, because it has higher NPV

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