Two mutually exclusive projects have the following NPVs and project lives.
$$\begin{array} { r r c }
\text { Project } & \text { NPV } & \text { Life } \
\text { Project A } & \$ 5,000 & \text { 3 years } \
\text { Project B } & \$ 6,500 & 5 \text { years }
\end{array}$$
If the cost of capital is 15%, which project would you accept?
A) A
B) B
C) Both A and B
D) Reject both A and B

Question

Two mutually exclusive projects have the following NPVs and project lives.
$$\begin{array} { r r c } 
\text { Project } & \text { NPV } & \text { Life } \
\text { Project A } & \$ 5,000 & \text { 3 years } \
\text { Project B } & \$ 6,500 & 5 \text { years }
\end{array}$$
If the cost of capital is 15%, which project would you accept?
A) A
B) B
C) Both A and B
D) Reject both A and B

Quizplus · Accepted Answer

The Answer of Two mutually exclusive projects have the following NPVs and project lives.
$$\begin{array} { r r c } 
\text { Project } & \text { NPV } & \text { Life } \
\text { Project A } & \$ 5,000 & \text { 3 years } \
\text { Project B } & \$ 6,500 & 5 \text { years }
\end{array}$$
If the cost of capital is 15%, which project would you accept?
A) A
B) B
C) Both A and B
D) Reject both A and B

Two Mutually Exclusive Projects Have the Following NPVs and Project