Question: Two projects being considered are mutually exclusive and have the following projected cash flows. If the required rate of return on these projects is 10

Two projects being considered are mutually exclusive and have the following projected cash flows. If the required rate of return on these projects is 10 percent, which would be chosen and why?

Select one:

Project B because it has the higher NPV.

Project B because it has the higher IRR.

Project A because it has the higher NPV.

Neither, because both have IRRs less than the cost of capital.

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