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You are considering two independent projects both of which have been assigned a discount rate of...

You are considering two independent projects both of which have been assigned a discount rate of 15% percent. Based on the project NPV, what is your recommendation concerning these projects?

Project A Project B
Year Cash Flow Year Cash Flow
0 -$40,000 0 -$51,173
1 $35,000 1 $18,400
2 $27,000 2 $14,750

You should accept both projects.

You should reject both projects.

You should accept project B and reject project A.

You should accept project A and reject project B.

You should accept project A and be indifferent to project B.
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