You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows. If the appropriate discount rate on these projects is 8 percent, which would be chosen and why?

What is the NPV of project A? What is the NPV of project B?

Which project would be chosen and why?

a. choose b because its npv is higher b. choose a because it npv is higher c. choose both because they both have positive npvs d. cannot choose without comparing their irrs

Data table PROJECTA PROJECTB YEAR CASH FLOW CASH FLOW 0 - $105,000 - $105,000 1 35,000 0 2 35,000 0 3 35,000 0 4 35,000 0 5 35,000 210,000 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.)