Question: You are considering two mutually exclusive projects with the following cash flows. Which project ( s ) should you accept if the discount rate is

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 Project B
0-$275,000-$202,000
10113,600
2081,900
3360,00047,000
A) Accept project A as it always has the higher NPV.
B) Accept project B as it always has the higher NPV.
C) Accept project A at 7% and project B at 10%.
D) Accept project A at 7% and project B at both 7% and 10%
E) Accept project A at 7% and neither at 10%

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