Question: Consider the following two projects: Cash flows C1 C2 C3 C4 Project A Project B -$150 -$150 60 75 60 75 60 75 60 a.

Consider the following two projects: Cash flows C1 C2 C3 C4

Consider the following two projects: Cash flows C1 C2 C3 C4 Project A Project B -$150 -$150 60 75 60 75 60 75 60 a. If the opportunity cost of capital is 10%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 10%. c. Which one would you choose if the cost of capital is 15%

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