Which project would you accept and why

Assignment Help Financial Management

Reference no: EM131312301

Projects a and b are mutually exclusive. project a costs 10,000 and is expected to generate cash inflows of 5,000 for 4 years. project b costs 10,000 and is expected to generate a single cash flow in year 4 of 23,000. the cost of capital is 12% which project would you accept and why?

a. Project B because it has the higher NPV

b. Project B because it has the higher IRR

c. Project A because it has the higher NPV

d. Project A because it has the higher IRR

Reference no: EM131312301

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