Question: Which project(s) should a firm choose when the projects are independent? When they are mutually exclusive? Suppose both are within the capital budget and k

Which project(s) should a firm choose when the projects are independent?

Which project(s) should a firm choose when the projects are independent? When they are mutually exclusive? Suppose both are within the capital budget and k is 11 percent for both projects. Project A: CF0 = -$2600; CF1 = $1020; CF2 = $4020; CF3 = $1520 Project B: CF0 = -$2600; CF1 = $1020; CF2 = $1020; CF3 = $4420 Both projects; project B O Project B; project B O Both projects; project A O Neither project; neither project

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