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You are considering two independent projects. The required rate of return is 11.25 percent for project A and 11.85 percent for project B. Project A
You are considering two independent projects. The required rate of return is 11.25 percent for project A and 11.85 percent for project B. Project A has an initial cost of $38,900 and cash inflows of $11,400, $16,900, and $26,200 for Years 1 to 3, respectively. Project B has an initial cost of $41,300 and cash inflows of $20,000 a year for three years. Which project(s), if either, should you accept?
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