Question: Your division is considering two projects with the following net cash flows (in millions): 0 1 2 3 Project A -$30 $10 $15 $22 Project
Your division is considering two projects with the following net cash flows (in millions):
0 1 2 3
Project A -$30 $10 $15 $22
Project B -$25 $15 $14 $11
If the WACC were 5% and Projects A and B were mutually exclusive, which project would you choose?
a) Project A
b) Project B
c) Neither
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