Question: You are considering two mutually exclusive projects with the following cash flows. Will your choice between the two projects differ if the required rate of

You are considering two mutually exclusive projects with the following cash flows. Will your choice between the two projects differ if the required rate of return is 8 percent rather than 11 percent? If so, what should you do?

Year Project A Project B

0 -$240,000 -$198,000

1 $ 0 $110,800

2 $ 0 $ 82,500

3 $325,000 $ 45,000

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