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Consider the following two projects A and B. Assume that the appropriate discount rate for each project is 20%. Year CF for Project A CF
Consider the following two projects A and B. Assume that the appropriate discount rate for each project is 20%.
| Year | CF for Project A | CF for Project B |
| 0 1 2 3 | - $100 70 80 90 | - $1,700 900 900 900 |
If projects A and B are mutually exclusive projects, which project(s) should you accept based on your best capital budgeting criteria? Please explain your rationale.
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