Quorex Is Evaluating Two Mutually Exclusive Projects

Multiple Choice

Quorex is evaluating two mutually exclusive projects.Project A has a net investment of $48,000 and net cash flows over a six year period of $12,500 per year.Project B also has a net investment of $48,000 but its net cash flows of $8,640 per year will occur over a 12 year period.If Quorex has a cost of capital of 14% for these projects, which project, if either, should be chosen and what is its NPV?

A) A, $862
B) A, $1,800
C) B, $2,475
D) B, $902