Question: You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Year Project A Cash Flow Project B

You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows:

Year

Project A

Cash Flow

Project B

Cash Flow

0

$(100,000)

$(100,000)

1

33,000

0

2

33,000

0

3

33,000

0

4

33,000

0

5

33,000

220,000

(Click

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spreadsheet.)

If the appropriate discount rate on these projects is

10

percent, which would be chosen and why?

The NPV of Project A is

$nothing.

(Round to the nearest cent.)

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