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 16 percent for both projects. Project A: CF0 = -$2150; CF1 = $930; CF2 = $3930; CF3 = $1430 Project B: CF0 = - $2150; CF1 = $930; CF2 = $930; CF3 = $4330 Project B; project B Neither project; neither project Both projects; project A Both projects; project B

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