If WiseGuy Inc. is choosing one of the above mutually exclusive projects (Project A or Project B), given a discount rate of 7%, which should the company choose?
A) Project A
B) Project B
C) Neither project — both have negative NPV.
D) Both projects — both have positive NPV.

Question

If WiseGuy Inc. is choosing one of the above mutually exclusive projects (Project A or Project B), given a discount rate of 7%, which should the company choose?
A) Project A 
B) Project B 
C) Neither project — both have negative NPV. 
D) Both projects — both have positive NPV.

Quizplus · Accepted Answer

B) NPVA= $615.55, NPVB= $4521.61