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 15 percent for both projects. Project A: CF0=$2450;CF1=$990;CF2= $3990;CF3=$1490 Project B:CF0=$2450;CF1=$990;CF2= $990;C3=$4390 Both projects; project A Neither project; neither project Both projects; project B Project B; project B

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