You have a choice between 2 mutually exclusive investments. If you require a 15% return, which...

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You have a choice between 2 mutually exclusive investments. If you require a 15% return, which investment should you choose? Year 0 1 23 2 A Cash Flow -$100,000 20,000 40,000 80,000 B Cash Flow -$125,000 75,000 45,000 40,000 A) Project A, because it has a smaller initial investment. B) Project B, because it has a higher NPV. C) Either one, because they have the same profitability indexes. D) Project A, because it has the higher internal rate of return. E) Project B, because it pays back faster. You have a choice between 2 mutually exclusive investments. If you require a 15% return, which investment should you choose? Year 0 1 23 2 A Cash Flow -$100,000 20,000 40,000 80,000 B Cash Flow -$125,000 75,000 45,000 40,000 A) Project A, because it has a smaller initial investment. B) Project B, because it has a higher NPV. C) Either one, because they have the same profitability indexes. D) Project A, because it has the higher internal rate of return. E) Project B, because it pays back faster.

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