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 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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