Two mutually exclusive projects have the following positive NPVs and project lives. $$\begin{array} { r c c }
\text { Project } & \text { NPV } & \text { Life } \
\text { Project A } & \$ 5,000 & 3 \text { years } \
\text { Project B } & \$ 6,500 & 5 \text { years }
\end{array}$$
If the cost of capital were 15%,which project would you accept?
A)Project A because it has higher EAC
B)Project B because it has higher EAC
C)Project A because its NPV can be earned more quickly
D)Project B beca

Question

Two mutually exclusive projects have the following positive NPVs and project lives. $$\begin{array} { r c c } 
\text { Project } & \text { NPV } & \text { Life } \
\text { Project A } & \$ 5,000 & 3 \text { years } \
\text { Project B } & \$ 6,500 & 5 \text { years }
\end{array}$$
If the cost of capital were 15%,which project would you accept?
A)Project A because it has higher EAC
B)Project B because it has higher EAC
C)Project A because its NPV can be earned more quickly
D)Project B beca

Quizplus · Accepted Answer

The Answer of Two mutually exclusive projects have the following positive NPVs and project lives. $$\begin{array} { r c c } 
\text { Project } & \text { NPV } & \text { Life } \
\text { Project A } & \$ 5,000 & 3 \text { years } \
\text { Project B } & \$ 6,500 & 5 \text { years }
\end{array}$$
If the cost of capital were 15%,which project would you accept?
A)Project A because it has higher EAC
B)Project B because it has higher EAC
C)Project A because its NPV can be earned more quickly
D)Project B beca

Two Mutually Exclusive Projects Have the Following Positive NPVs and Project