Question: You are considering two mutually exclusive projects. Both projects have an initial cost of $52,000. Project A produces cash inflows of $25,300, $37100, and $22,000

You are considering two mutually exclusive projects. Both projects have an initial cost of $52,000. Project A produces cash inflows of $25,300, $37100, and $22,000 for years 1 through 3, respectively. Project B produces cash inflows of $43,600, $19,800 and $10,400 for years 1 through 3, respectively. The required rate of return is 14.2 percent for Project A and 13.9 percent for Project B. Which project should you accept and why? Multiple Choice Project A because it has the higher required rate of return 0 Project A because it has the larger NPV Project 8, because it has the largest cash inflow in year 1. 0 Project B; because it has the lower required rate of return 0 Multiple Choice Project A because it has the higher required rate of return Project A because it has the larger NPV. Project B, because it has the largest cash inflow in year 1 Project B, because it has the lower required rate of return Project B, because it has the larger NPV
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