Question
You are considering the following two mutually exclusive projects. The required rate of return is 12% for project A and 11.75% for project B. You
You are considering the following two mutually exclusive projects. The required rate of return is 12% for project A and 11.75% for project B. You should accept Project ___ because its NPV is _____ greater than that of the other project.
| Year | Project A | Project B |
| 0 | -$54,000 | -$78,900 |
| 1 | $36,300 | $35,700 |
| 2 | $24,600 | $62,800 |
| 3 | $9,500 | $0 |
options:
|
| A; $1,901.18 |
|
| A; $1,449.26 |
|
| B; $966.61 |
|
| B; $1,821.02 |
|
| B; $1,324.08 |
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Auditing A Risk Based Approach to Conducting a Quality Audit
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg
10th edition
978-1305080577
