You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 8.5 percent? What if the discount rate is 13 percent?

A)accept project A as it always has the higher NPV
B)accept project B as it always has the higher NPV
C)accept A at 8.5 percent and B at 13 percent
D)accept B at 8.5 percent and A at 13 percent
E)accept B at 8.5 percent and neither at 13 percent

Question

You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 8.5 percent? What if the discount rate is 13 percent?

A)accept project A as it always has the higher NPV 
B)accept project B as it always has the higher NPV 
C)accept A at 8.5 percent and B at 13 percent 
D)accept B at 8.5 percent and A at 13 percent 
E)accept B at 8.5 percent and neither at 13 percent

Quizplus · Accepted Answer

The Answer of You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 8.5 percent? What if the discount rate is 13 percent?

A)accept project A as it always has the higher NPV 
B)accept project B as it always has the higher NPV 
C)accept A at 8.5 percent and B at 13 percent 
D)accept B at 8.5 percent and A at 13 percent 
E)accept B at 8.5 percent and neither at 13 percent

You Are Considering Two Mutually Exclusive Projects with the Following