Question: You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.25% for project A and

You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.25% for project A and 10.75% for project B. Which project should you accept and why?

project A; because its NPV is about $335 more than the NPV of project B.
project A; because it has the higher required rate of return.
project B; because it has the largest total cash inflow.
project B; because it returns all its cash flows within two years.
project B; because it is the largest sized project.

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