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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