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 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

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