Question: You are considering the following two mutually exclusive projects. The required rate of return is 12% for project A and 11.75% for project B. You

You are considering the following two mutually exclusive projects. The required rate of return is 12% for project A and 11.75% for project B. You should accept Project ___ because its NPV is _____ greater than that of the other project.

Year Project A Project B
0 -$54,000 -$78,900
1 $36,300 $35,700
2 $24,600 $62,800
3 $9,500 $0

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