Question: You are considering the following two mutually exclusive projects. The required rate of return is 14.6 percent for project A and 13.8 percent for project

 You are considering the following two mutually exclusive projects. The required

You are considering the following two mutually exclusive projects. The required rate of return is 14.6 percent for project A and 13.8 percent for project B. Which project should you accept and why? Year Project A Project B o - $50,000 - $50,000 1 40,000 24,800 2 21,000 36,000 3 10,000 21,000 O project A; because it has the largest total cash inflow project A; because its NPV is about $4,900 more than the NPV of project B O project B; because it has the largest cash flow in year one O project B; because its NPV is about $6,300 more than the NPV of project A project B; because it has the lower required return

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