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 |
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Option Volatility And Pricing Advanced Trading Strategies And Techniques
Authors: Sheldon Natenberg
2nd Edition
0071818774, 978-0071818773
