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27./Your firm is considering investing in one of two mutually exclusive projects. Project A requires an initi idering investing in one of two mutually exclusive projects. Project A requires an initial outlay of s3,500 with expected future cash flows of $2,000 per year for the next three years. Project B requires an initial outlay of S2,500 with expected future cash flows of $1,500 per year for the next two years. The appropriate discount rate for your firm is 12% and it is not subject to capital rationing. Assuming both projects can be replaced with a similar investment at the end of their respective lives, compute the NPV of the two chain cycle for Project A and three chain cycle for Project B. A. $2,865 and $94 B. $2,232 and $85 C. $5,000 and $1,500 D. $3,528 and $136 Answer: B. $2,232 and $85