Question: 6. ABC Company is considering two projects for a new investment, as shown in table below (in dollars). Which is better if ABC uses the

6. ABC Company is considering two projects for a new investment, as shown in table below (in dollars). Which is better if ABC uses the NPV rule to select between the projects? Suppose that the interest rate is 12%. \begin{tabular}{llrrrrr} \hline & Year 0 & Year 1 & Year 2 & Year 3 & Year 4 \\ \hline Project A & Costs & 10,000 & 0 & 0 & 0 & 0 \\ & Returns & 0 & 0 & 0 & 1,000 & 20,000 \\ Project B & Costs & 5,000 & 5,000 & 0 & 0 & 0 \\ & Returns & 0 & 10,000 & 5,000 & 3,000 & 2,000 \end{tabular}
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