Question: Which mutually exclusive project would you select, if both are priced at $1,480 and your required return is 14%: Project A with three annual cash

Which mutually exclusive project would you select, if both are priced at $1,480 and your required return is 14%: Project A with three annual cash flows of $1,425; or Project B, with 3 years of zero cash flow followed by 3 years of $2,025 annually?

Multiple Choice

Project A

Project B

You are indifferent since the NPVs are equal.

Neither project should be selected.

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