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You are considering two independent projects both of which have been assigned a discount rate 12.5% percent. Based on the project NPV, what is your
You are considering two independent projects both of which have been assigned a discount rate 12.5% percent. Based on the project NPV, what is your recommendation concerning these projects?
Project A year cash flow
Year 0: ($-51,471)
Year 1: $28,405
Year 2: $14,000
Project B year cash flows
Year 0: (-45,000)
Year 1: $38,500
Year 2: $17,325
a. you should accept both projects
b. you should reject both projects
c. you should accept project A and reject project B
d. accept project B and reject project A
e. Accept project A and be indifferent to project B
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