question archive Which mutually exclusive project would you select, if both are priced at $2,000 and your discount rate is 15%; Project A with three annual cash flows of $1,100, or project B, three years of zero cash flow followed by three years of $1,600 annually? a) Project B b) Both projects because they have NPV
Subject:FinancePrice: Bought3
Which mutually exclusive project would you select, if both are priced at $2,000 and your discount rate is 15%; Project A with three annual cash flows of $1,100, or project B, three years of zero cash flow followed by three years of $1,600 annually?
a) Project B
b) Both projects because they have NPV.
c) Project A
d) Neither project should be selected because they have negative NPV.