Question: You are considering two mutually exclusive projects with the cash flows as show in the table below. If the required rate of return is 10
You are considering two mutually exclusive projects with the cash flows as show in the table below. If the required rate of return is 10 percent, which would you choose and why? Year 0 1 2 3 4 5 Project A Project B ($45,000) ($45,000) $15,750 0 $15,750 0 $15,750 0 $15,750 0 $15,750 $99,000 O Project B because of higher IRR O Project A because of higher NPV O Project A because of higher IRR O Project B because of higher NPV
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