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You are considering the following two mutually exclusive projects. The required return on each project is 12 percent. Which project should you accept and
You are considering the following two mutually exclusive projects. The required return on each project is 12 percent. Which project should you accept and what is the best reason for that decision? Year Cash Flow (A) Cash Flow (B) 0 -$32,000 -$26,000 1 11,500 3,500 2 15,900 5,800 3 13,200 24,900 Project A, because it pays back faster Project A, because it has the higher internal rate of return Project B, because it has the higher internal rate of return Project A, because it has the higher net present value Project B, because it has the higher net present value
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