Question: You are considering two mutually exclusive projects, A and B. Project A costs $60,000 and generates cash flows of $9,000 for 10 years. Project B


You are considering two mutually exclusive projects, A and B. Project A costs $60,000 and generates cash flows of $9,000 for 10 years. Project B costs $60,000 and generates cash flows of $2,000 for seven years and then cash flows of $27,000 for three years. Report rates in percentage form to two decimal places i.e. 10.03% not 10% Which project would you ACCEPT if your discount rate was 5%? O A) Project A B) Project B OC) Both Project A and B OD) Neither Project A or B Which project would you ACCEPT if your discount rate was 10%? O A) Project A OB) Project B OC) Both Project A and B OD) Neither Project A or B
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