Question: You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows. If the appropriate discount rate on these

You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows. If the appropriate discount rate on these projects is 8 percent, which would be chosen and why?

What is the NPV of project A? What is the NPV of project B?

Which project would be chosen and why?

a. choose b because its npv is higher b. choose a because it npv is higher c. choose both because they both have positive npvs d. cannot choose without comparing their irrs

You have been assigned the task of evaluating two mutually exclusive projects

Data table PROJECTA PROJECTB YEAR CASH FLOW CASH FLOW 0 - $105,000 - $105,000 1 35,000 0 2 35,000 0 3 35,000 0 4 35,000 0 5 35,000 210,000 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.)

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