Question: You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 7 %? What
You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 7 %? What if the discount rate is 10%? Year Project A -$275,000 0 Project B -$ 202,000 113,600 0 2 0 81,900 3 360,000 47,000 Select one: O a. Accept project A as it always has the higher NPV. O b. Accept A at 7% and B at 10 %. c. Accept B at 7% and A at 10 %. O d. Accept A at 7% and neither at 10 % e. Accept project B as it always has the higher NPV
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