Question

Calculate and choose project/s assuming that these two projects are (1) mutually exclusive OR (2) independent....

  1. Calculate and choose project/s assuming that these two projects are

(1) mutually exclusive OR

(2) independent.

NPV (WACC 6%)

CFs Year

A

B

0

-2050

-4300

1

750

1500

2

760

1518

3

770

1536

4

780

1554
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Answer #1

Since both projects are mutually exclusive and independent, we can choose both projects as they have net present value greater than zero.

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