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Question 8 4 pts Consider two mutually exclusive projects with the following cash flows: Project A is a 6 year project with initial (time 0)
Question 8 4 pts Consider two mutually exclusive projects with the following cash flows: Project A is a 6 year project with initial (time 0) cash outflow of 40,000 and time 1 through 6 cash inflows of 8000, 14000,13000,12000,11000,and 10000 respectively. Project B is a 3 year project with initial (time 0) cash outflow of 20,000 and time 1 through 3 cash inflows of 7000,13000, and 12000 respectively. Assuming a 11.5% cost of capital, which project has a steeper NPV profile. Project A O Project B B Project A-B Project B-A
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