单选题 An analyst has gathered the following data about a company with a 12 percent cost of capital:

Project A
Project B
Cost
$15000
$ 25000
Life
5 years
5 years
Cash inflows
$ 5000/year
$ 7500/year
Projects A and B are mutually exclusive. What should the company do? A. Reject A, Reject B. B. Accept A, Reject B. C. Reject A, Accept B.
【正确答案】 B
【答案解析】For mutually exclusive projects accept the project with the highest NPV. In this example the NPV for Project A (3024) is higher than the NPV of Project B (2036). Therefore accept Project A and reject Project B.