Question: A firm is considering Projects A and B. These projects are at the same risk level, and only one should be chosen. If the wrong

A firm is considering Projects A and B. These projects are at the same risk level, and only one should be chosen. If the wrong project is selected, how much potential value would the firm lose? Cash flows are shown below.

WACC:	7.75%
	0	1	2	3	4
CF_A	-$1,025	$380	$380	$380	$380
CF_B	-$2,150	$765	$765	$765	$765

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