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You are considering two independent projects both of which have been assigned a discount rate of 11.5% percent. Based on the project NPV, what is
You are considering two independent projects both of which have been assigned a discount rate of 11.5% percent. Based on the project NPV, what is your recommendation concerning these projects?
Year | Cash Flow |
---|---|
0 | -$91,850 |
1 | $28,405 |
2 | $64,890 |
Year | Cash Flows |
---|---|
0 | -$45,000 |
1 | $38,500 |
2 | $17,325 |
Select one:
a. You should reject both projects.
b. You should accept project A and reject project B.
c. You should accept project B and reject project A.
d. You should accept both projects.
e. You should accept project A and be indifferent to project B.
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