Which mutually exclusive project would you select

Reference no: EM132005352

Question: Which mutually exclusive project would you select, if both are priced at $1,000 and your required return is 15%: Project A with three annual cash flows of $1,000; or Project B, with 3 years of zero cash flow followed by 3 years of $1,500 annually? Project A Project B Neither project should be selected. You are indifferent since the NPVs are equal.

Reference no: EM132005352

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