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10. Use the table for the question(s) below. Consider the following two projects: a) Assume that projects A and B are mutually exclusive. Which project

10. Use the table for the question(s) below.

Consider the following two projects:

a) Assume that projects A and B are mutually exclusive. Which project is the correct investment decision and the best rational for that decision?

b) How many years of payback period for project A will be?

Year 0 Year 1 Year 2 Year 3 Year 4 Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow A -100 40 50 60 N/A B -73 30 30 30 30 Discount Rate .15 .15

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