Question: Which mutually exclusive project would you select, if both are priced at $2,000 and your discount rate is 15%; Project A with three annual cash

 Which mutually exclusive project would you select, if both are priced

Which mutually exclusive project would you select, if both are priced at $2,000 and your discount rate is 15%; Project A with three annual cash flows of $1,100, or Project B, with three years of zero cash flow followed by three years of $1,600 annually? Project B Both projects because they have NPV. Project A Neither project should be selected because they have negative NPV

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