Question: YEAR PROJECT A CASH FLOW PROJECT B CASH FLOW 0 -110,000 -110,000 1 30,000 0 2 30,000 0 3 30,000 0 4 30,000 0 5

YEAR PROJECT A CASH FLOW PROJECT B CASH FLOW 0 -110,000 -110,000 1 30,000 0 2 30,000 0 3 30,000 0 4 30,000 0 5 30,000 230,000

(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: If the appropriate discount rate on these projects is 12 percent, which would be chosen and why?

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