Considering two independent projects with the cash flows

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Reference no: EM131880341

You are considering two independent projects with the following cash flows. The required return for both projects is 16 percent. Given this information, which one of the following statements is correct? Year Project A Project B 0 -$125,000 -$135,000 1 $46,000 $50,000 2 $79,000 $30,000 3 $51,000 $110,000 a) You should accept Project A and reject Project B based on their respective NPVs. b) You should accept Project B and reject Project A based on their respective NPVs. c) You should accept Project A and reject Project B based on their respective IRRs. d) You should accept Project B and reject Project A based on their respective IRRs. e) You should accept both projects based on both the NPV and IRR decision rules.

Reference no: EM131880341

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