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QUESTION 5 Two mutually exclusive projects being considered by a firm and have the following projected cash flows: Project A Project B Year Cash Flow

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QUESTION 5 Two mutually exclusive projects being considered by a firm and have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow ($120,000) ($120,000) 50,000 30,000 50,000 30,000 50,000 30,000 30,000 30,000 30,000 0 1 2 3 4 5 The cost of capital is 10 percent. Using the NPV rule, evaluate both projects using the replacement approach Accept Project A Accept Project B Accept both Accept neither

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