QUESTION 6

1. You are considering the following two mutually exclusive projects. The required rate of return is 10.75 percent for project A and 12 percent for project B. Which project should you accept and why?

   		project A; because it has the lower required rate of return
   		project A; because its NPV is bigger than the NPV of project B
   		project B; because it has higher IRR.
   		both project A and project B; because both projects have positive NPV.
   		project B; because it is the largest sized project