7. You are considering two mutually exclusive projects with the following cash flows. Will your choice between the two projects differ if the required rate of return is 8% rather than 11% ? If so, what should you do?© BrainMass Inc. brainmass.com June 3, 2020, 10:09 pm ad1c9bdddf
Yes; Select A at 8% and B at 11%.
The NPV of A at 8% is higher and so select A.
At 11%, the NPV of A is negative and B is positive and so select B.
7. You are ...
The solution explains how to decide between mutually exclusive projects.