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 kis

 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 kis 10 percent for both projects. Project A: CF0 = -$1850; CF1 = $870; CF2 = $3870; CF3 = $1370 Project B: CF0 = -$1850; CF1 = $870; CF2 = $870; CF3 = $4270 Project B; project B Both projects; project A Both projects; project B Neither project; neither project

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