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 12 percent for both projects. Project A: CF0=$1600;CF1=$820;CF2=$3820;CF3=$1320 Project B: CF0=$1600;CF1=$820;CF2=$820;CF3=$4220 Both projects; project A Both projects; project B Neither project; neither project Project B; project B

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