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 13 percent for both projects. Project A: CF0=$2000;CF1=$900;CF2=$3900;CF3=$1400 Project B: CF0=$2000;CF1=$900;CF2=$900;CF3=$4300 Both projects; project B Both projects; project A Neither project; neither project Project B; project B

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