Question: You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.0% for Project A and

You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.0% for Project A and 9.25% for Project B. Which project given the cash flow information below should you accept and why?

 

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Year Project A Project B

0 -$58,000 -$150,900

1 28,400 69,700

2 31,300 90,800 3 11,700 18,000

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To determine which project to accept we need to calculate the net present value NPV of each project ... View full answer

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