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You are considering the following two mutually exclusive projects. Which project(s) should be recommended? Project A Project B Year Cash Flow Year Cash Flow 0
You are considering the following two mutually exclusive projects. Which project(s) should be recommended?
Project A Project B
Year Cash Flow Year Cash Flow
0 -$75,000 0 -$70,000
1 $19,000 1 $10,000
2 $48,000 2 $16,000
3 $12,000 3 $72,000
Required rate of return:
10 percent (for A) 13 percent (for B)
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