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

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 0 1 2 3 Project A -$50,000 24,800 36,200 21,000 Project B -$50,000 41,000 20,000 10,000 O project A; because it has the higher required rate of return project A; because its NPV is about $4,900 more than the NPV of project B project B; because it has the largest total cash inflow O project B; because it has the largest cash inflow in year one O project B; because it has the lower required return

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