Question: Which of the two mutually exclusive projects should be accepted under net present value ? Cash flows (in $) of the projects are as follows

Which of the two mutually exclusive projects should be accepted under net present value ? Cash flows (in $) of the projects are as follows and subsequent cash flows are discounted at 10% which is the cost of capital of both the companies:

Description

Project A

Project B

Year 0

Initial investments

-100,000

-100,000

Year 1-5

Present value of cash inflows

1,12,000

115,000

Select one:

a. Project B

b. Both Project A & Project B

c. Project A

d. None of Project A & Project B

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