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(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Year
(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Year Project A Cash Flow Project B Cash Flow $(100,000) 0 $(100,000) 1 33,000 2 33,000 3 33,000 4 33,000 5 33,000 0 0 0 0 220,000 (Click on the icon in order to copy its contents into a spreadsheet.) If the appropriate discount rate on these projects is 10 percent, which would be chosen and why? The NPV of Project A is $ (Round to the nearest cent.) The NPV of Project B is $. (Round to the nearest cent.) Which project would be chosen and why? (Select the best choice below.) O A. Choose A because its NPV is higher. OB. Cannot choose without comparing their IRRs. OC. Choose both because they both have positive NPVs. Time Remaining: 02-36-38
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