Following are the cash flows expected to be generated by 2 mutually exclusive projects, A and B. If the initial investment is $ 20,000 for both projects, and a company is to invest in only 1 of them, which project should they select?

a. Draw the Cash Flow Diagram for the following table. Assume i = 8%

b. Arrive at the decision using the present worth analysis technique. Show all steps to your decision.

Project A

Year	Cash Flow
0	-20,000
1	+ 5000
2	+5000
3	+10,000

Project B

Year	Cash Flow
0	-20,000
1	+ 5,000
2	+2,000
3	-1,000
4.	+14,000