Question: Zayas, LLC, has identified the following two mutually exclusive projects: Year 0 1 WN-O Cash Flow (A) -$ 62,000 38,000 32,000 22,000 14,400 Cash Flow

 Zayas, LLC, has identified the following two mutually exclusive projects: Year
0 1 WN-O Cash Flow (A) -$ 62,000 38,000 32,000 22,000 14,400
Cash Flow (B) -$ 62,000 24,800 28,800 34,000 24,800 4 b. Assume

Zayas, LLC, has identified the following two mutually exclusive projects: Year 0 1 WN-O Cash Flow (A) -$ 62,000 38,000 32,000 22,000 14,400 Cash Flow (B) -$ 62,000 24,800 28,800 34,000 24,800 4 b. Assume the required return is 13 percent. What is the NPV for each of these projects ? (Do no Net present value $ Project A Project B Which project will you choose if you apply the NPV decision rule? Project B c. Over what range of discount rates would you choose Project A? (Do Project A Above % Over what range of discount rates would you choose Project B? (Do not Project B Below % At what discount rate would you be indifferent between these two projects? Discount rate % References

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