Question: Project A Project B Time 0 10,000 10,000 Time 1 5,000 4,000 Time 2 4,000 3,000 Time 3 3,000 10,000 If WiseGuy Inc is choosing
| Project A | Project B | |
| Time 0 | 10,000 | 10,000 |
| Time 1 | 5,000 | 4,000 |
| Time 2 | 4,000 | 3,000 |
| Time 3 | 3,000 | 10,000 |
If WiseGuy Inc is choosing one of the above mutually exclusive projects (Project A or Project B), given a discount rate of
10%,
which should the company choose?
A.
Project A
B.
Project B
C.Neither project
both have negative NPV.
D.Both projects
both have positive NPV.
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