问题 单项选择题

An analyst has gathered the following data about a company with a 12 percent cost of capital.
 Project AProject B
Initial cost$15000$20000
Life5years4years
Cash inflows$5000/year$7500/year

 

If the projects are mutually exclusive, the company should:()

A. accept both projects.

B. accept A and reject B.

C. reject A and accept B.

答案

参考答案:B

解析:

Accept the project with the higher NPV.

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