APC can control its environmental pollution using either " Project Old Tech" or Project New Tech. Both will do the job, but the actual costs involved with Project New Techm which used unprovedm bew state of the art technology, could be much higher than expected cost levels. The cash outflows associated with POT which uses standard provent technolgy are less risky athey are about as uncertain the the cash flows associate with an average project. APC require rate of return for average risks projects normally is set at 12 percent and the companys adds 3 percent for high risk prjects but substracts 3 percent for low risk projects. The two projects in question meet the criteris fr high and average risk but the financial manager is concered about pplying the normal rule to such cost only projects. You must decide which project to recommend and you should recomment the one with th elower PV cost. What is the pv of the costs of the better project.