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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?

Project A
Year Cash Flow
0 -$91,850
1 $28,405
2 $64,890

Project B
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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