Question: Two mutually exclusive projects have the following positive NPV's and project lives Project A - NPV $5,000 Life 3 years Project B - NPV $6,500

Two mutually exclusive projects have the following positive NPV's and project lives

Project A - NPV $5,000 Life 3 years

Project B - NPV $6,500 Life 5 years

If the cost of capital were 15%, which project would you accept?

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