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Suppose you have two mutually exclusive projects, Project A and Project B, and the projects will be repeated at the end of their initial lives.
Suppose you have two mutually exclusive projects, Project A and Project B, and the projects will be repeated at the end of their initial lives. Both projects should be evaluated using a 10% WACC. Based on the cash flows below, which project should you accept?
Year A B
0 -50. -50
1 25 45
2 25 45
3 25
4 25
5 25
A. Reject Both
B. Project A
C. Project B
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