Question
You are considering two mutually exclusive projects. Project A has cash flows of -$87,000, $32,600, $35,900, and $43,400 for years 0 to 3, respectively. Project
You are considering two mutually exclusive projects. Project A has cash flows of -$87,000, $32,600, $35,900, and $43,400 for years 0 to 3, respectively. Project B has cas flows of -$85,000, $14,700, $21,200, and $89,800 for years 0 to 3, respectively. Project A has a required return of 9 percent while project B's required return is 11 percent. Which project(s), if either, should you accept based on net present value?
A) Accept Project A and reject Project B
B) Reject Project A and Accept Project B
C) Accept both projects
D) Reject both Projects
E) Accept either one but not both
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