Which project should be chosen if the 2 projects below are m…

Which project should be chosen if the 2 projects below are mutually exclusive? Assume a cost of capital (WACC) of 8%. Hint: We didn’t get a chance to cover “mutually exclusive” so let’s learn something…it means you can only choose one option so it’s like choosing directions to get across town (1604 vs I-10). How many directions can you take at once? Choose a project based on the BEST rule that shows value added to SH wealth. (2) Project NPV IRR A $40k 15% B $60k 10%