Question: Consider the following two projects: Cash flows Project A Project B ce -$240 -$240 C1 100 123 180 123 C3 100 123 C4 100 C2

Consider the following two projects: Cash flows Project A Project B

Consider the following two projects: Cash flows Project A Project B ce -$240 -$240 C1 100 123 180 123 C3 100 123 C4 100 C2 a. If the opportunity cost of capital is 8%, 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 8%. c. Which one would you choose if the cost of capital is 16%? d. What is the payback period of each project

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