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Consider the following two projects: Project Year 0 Cash Flow -100 -73 Year 1 Cash Flow 40 30 Year 2 Cash Flow 50 Year 3

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Consider the following two projects: Project Year 0 Cash Flow -100 -73 Year 1 Cash Flow 40 30 Year 2 Cash Flow 50 Year 3 Cash Flow 60 30 Year 4 Cash Flow N/A 30 Discount Rate 0.11 0.11 A B 30 Assume that projects A and B are mutually exclusive. The correct investment decision and the best rationale for that decision is to O A) invest in project A, since NPVB IRRA C) invest in project B, since NPVB > NPVA D) invest in project A, since NPVA > 0

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