Question
You are considering the following two mutually exclusive projects. The required rate of return is 11.25 % for project A and 10.75 % for project
You are considering the following two mutually exclusive projects. The required rate of return is 11.25 % for project A and 10.75 % for project B. Which project should you accept and why? Year Project A Project B 0 -$48,000 -$126,900 1 $18,400 $69,700 2 $31,300 $80,900 3 $11,700 $0 Project A; because it has the higher required rate of return. Project A; because its NPV is about $335 more than the NPV of project B. Project B; because it is the largest sized project. Project B; because it returns all its cash flows within two years. Project B; because it has the largest total cash inflow.
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