(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Project A Cash Flow Project B Cash Flow Year S(105,000) $(105,000) 1 37,000 2 37,000 3 37,000 4 37,000 5 37,000 215,000 (Click on the icon in order to copy its contents into a spreadsheet.) If the appropriate discount rate on these projects is 11 percent, which would be chosen and why? The NPV of Project A is $]. (Round to the nearest cent.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows:
Project A
Cash Flow
Project B
Cash Flow
Year
S(105,000)
S(105,000)
1
37,000
37,000
3
37,000
37,000
37,000
(Click on the icon e in order to copy its contents into a spreadsheet.)
4
5
215,000
If the appropriate discount rate on these projects is 11 percent, which would be chosen and why?
The NPV of Project A is $
(Round to the nearest cent.)
Transcribed Image Text:(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Project A Cash Flow Project B Cash Flow Year S(105,000) S(105,000) 1 37,000 37,000 3 37,000 37,000 37,000 (Click on the icon e in order to copy its contents into a spreadsheet.) 4 5 215,000 If the appropriate discount rate on these projects is 11 percent, which would be chosen and why? The NPV of Project A is $ (Round to the nearest cent.)
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