Good old XYZorp (they're back!)? is considering two mutually exclusive projects? A & B in order to expand their product line? After letting the cost accountants out of their cages, it was determined that projects A's initial investment must be $42,400, while project B will cost $60,000 Project A has projected cash inflows of $25,000 per year for three years? Project B's inflows are more variable? $10,000 in year 1; $30 000 in year 2; and $40,000 in its final year. The firm's cost of capital is 12% ? YES - this IS important