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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