1 Consider the two projects shown in the table, a research and development program (R&D) and an advertising campaign. Both require an initial outlay of $1000. The R&D program produces a return of $600 at the end of the first year and $500 at the end of the third year The advertising campaign, on the other hand, has a single large payoff of $1200 in three years. Annual net returrn R&D $10000 year r(%) PV Advertising $10000 $6000 R&D Advertising 0 0 0.01 0.03 0.05 0.07 $12000 $5500 A. Fill in the blanks. B. What conclusions can you get about the discount rate? 1 Consider the two projects shown in the table, a research and development program (R&D) and an advertising campaign. Both require an initial outlay of $1000. The R&D program produces a return of $600 at the end of the first year and $500 at the end of the third year The advertising campaign, on the other hand, has a single large payoff of $1200 in three years. Annual net returrn R&D $10000 year r(%) PV Advertising $10000 $6000 R&D Advertising 0 0 0.01 0.03 0.05 0.07 $12000 $5500 A. Fill in the blanks. B. What conclusions can you get about the discount rate