Question: You are considering the following two mutually exclusive projects. The required rate of return is 10 percent for project A and 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 10 percent for project A and 8 percent for project B. Based on the NPV, which project should be chosen? Why or why not? Year Project A Project B 0 -$320,000 -$525,000 1 $292,000 $396,000 2 $165,000 $319,000 3 $107,000 $204,000 O Project B; because the NPV of the project B is greater than the NPV of the project A. O None; because both have the negative NPV. Project A; because the NPV of the project A is greater than the NPV of the project B. Both; because Both have the positive NPV. O Project A; because it has the higher required rate of return

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