The following information is available on two mutually exclusive projects.  Project                   Year 0         Year 1          Year 2           Year 3         Year 4 A                           -$700           $200            $300            $400           $500 B                           -$700           $600            $300            $200           $100   If the required rate of return is 10%, which project should be selected using the net present value (NPV) method?   Group of answer choices A B

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
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The following information is available on two mutually exclusive projects. 

Project                   Year 0         Year 1          Year 2           Year 3         Year 4

A                           -$700           $200            $300            $400           $500

B                           -$700           $600            $300            $200           $100

 

If the required rate of return is 10%, which project should be selected using the net present value (NPV) method?

 

Group of answer choices
A
B
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