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

If the appropriate discount rate on these projects is 10 percent, which would be chosen and why?

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