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Q. No. 7: ICO Company must decide between two mutually exclusive projects. The following information describes the cash flows of each project. Year Project A

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Q. No. 7: ICO Company must decide between two mutually exclusive projects. The following information describes the cash flows of each project. Year Project "A" Project "B" 0 -$40,000 -$45,000 1 20,000 20,000 2 18,000 20,000 3 16,000 20,000 4 12,000 20,000 Question: If the firm evaluated these projects at 12%, what decision should the firm make about these two projects using NPV, IRR, & Payback period

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