Question: Crockett Graphic Designs Inc. is considering two mutually exclusive projects. Both projects require an initial after - tax investment of $ 9 , 0 0

Crockett Graphic Designs Inc. is considering two mutually exclusive projects. Both projects require an initial after-tax investment of $9,000 and are typical average-risk projects for the firm. Project A has an expected life of 2 years with after-tax cash inflows of $7,000 and $8,000 at the end of Years 1 and 2, respectively. Project B has an expected life of 4 years with after-tax cash inflows of $6,000 at the end of each of the next 4 years. The firms WACC is 11%.

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