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Question 14 (1 point) Alice is considering two mutually exclusive projects. Project A has an initial cost of $56,450.00. The cash inflows of project
Question 14 (1 point) Alice is considering two mutually exclusive projects. Project A has an initial cost of $56,450.00. The cash inflows of project A are $35,000.00, $26,400.00, and $10,250.00 over the next three years, respectively. Project B has an initial cost of $87,900.00. The cash inflows for project B are $43,000.00, $65,000.00, and $0.00 over the next three years, respectively. The required rate of return is 12.5% for project A and 11% for project B. You should accept Project because its NPV is greater than that of the other project. a) A; $866.16 b) B; $874.92 c) A; $924.23 d) B: $901.81 e) A; $921.53
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