YEAR 0 1 PROJECT A -50,000 23,700 21,700 19,200 14,300 PROJECT B -353,000 42,000 62,000 62,000 500,000 2 3 4 You consider two mutually exclusive projects whose cash flows are given above. Required return is 16%. Which project should be accepted and why? Project A should be accepted since NPV of Project A is higher than NPV of Project Project should be accepted since required return is less than the cross-over point and at this required rate NPV of Project A is higher than NPV of Project Project should be accepted since required return is less than the cross-over point and for this required return NPV of Project is higher than NPV of Project A Project should be accepted since ject has higher IRR Project should be accepted since required return greater than the crossover point