Question: You are considering the following two mutually exclusive projects. The required rate of return is 14.0 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 14.0 percent for project A and 13.8 percent for project B. Which project should you accept and why?
| 1 | project A; because its NPV is about $4,900 more than the NPV of project B | |
| 2 | project A; because its NPV is about $5,132 more than the NPV of project B | |
| 3. | project A; because its NPV is about $5,527 more than the NPV of project B | |
| 4. | project B; because it has the largest cash inflow in year one | |
| 5. | project B; because it has the lower required return
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which project should I accept and why ?
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