?(Mutually exclusive projects and NPV?) You have been assigned the task of evaluating two mutually exclusive...

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?(Mutually exclusive projects and NPV?) You have been assignedthe task of evaluating two mutually exclusive projects with thefollowing projected cash? flows:

YEAR   PROJECT A CASH FLOW   PROJECT B CASHFLOW
0 -105,000 -105,000
1 40,000 0
2 40,000 0
3 40,000 0
4 40,000 0
5 40,000 240,000

If the appropriate discount rate on these projects is 8?percent, which would be chosen and? why? What is the NPV ofproject? A? What is the NPV of project b?

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?(Mutually exclusive projects and NPV?) You have been assignedthe task of evaluating two mutually exclusive projects with thefollowing projected cash? flows:YEAR   PROJECT A CASH FLOW   PROJECT B CASHFLOW0 -105,000 -105,0001 40,000 02 40,000 03 40,000 04 40,000 05 40,000 240,000If the appropriate discount rate on these projects is 8?percent, which would be chosen and? why? What is the NPV ofproject? A? What is the NPV of project b?

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