Which of Project A and Project B should you accept

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Reference no: EM132975164

Question - Consider the cash flows for the following projects:

Project A: Initial investment = $43,300; Year 1 = $22,000; Year 2 = $21,500; Year 3 = $17,000

Project B: Initial investment = $55,000; Year 1 = $0; Year 2 = $34,500; Year 3 = $55,700

Which of Project A and Project B should you accept if they are mutually exclusive and the required rate of return is 20%?

a) Project A

b) Project B

c) Both projects

d) Neither project

Reference no: EM132975164

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