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? Project A: Initial Cost, Year 0 = $50,000 cash inflow year 1 = $24,000 cash inflow year 2= 36,000 cash inflow year 3= $21,000 Project B: Initial Cost, Year 0 = $50,000 cash inflow year 1= $41,000 cash inflow year 2= 20,000 cash inflow year 3= $10,000
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