Posted: December 22nd, 2022

Projects A and B are mutually exclusive. Project A costs $10,000 and is expected to generate cash inflows of $4,000 for four years. Project B costs $10,000 and is expected to generate a single cash flow in year 4 of $20,000. The cost of capital is 12 percent. Which project would you accept and why?

Project B because it has the higher NPV.

Project B because it has the higher IRR.

Project A because it has the higher NPV.

Project A because it has the higher IRR.

Place an order in 3 easy steps. Takes less than 5 mins.