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Ch 5. ABC Company has the following mutually exclusive projects. Year Project A Project B 0 -$19,520 -$16,800 1 11,500 9,500 2 8,750 7,100 3
Ch 5. ABC Company has the following mutually exclusive projects.
| Year | Project A | Project B |
| 0 | -$19,520 | -$16,800 |
| 1 | 11,500 | 9,500 |
| 2 | 8,750 | 7,100 |
| 3 | 2,500 | 3,500 |
If the company uses the NPV method to rank these two projects, which project should be chosen if the appropriate discount rate is 15 percent?
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