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) NPV_A= $615.55, NPV_B= $4521.61