Projects A and B are both normal projects with an initial cost of $20,000, followed by a series of positive cash inflows. Project A's undiscounted net cash flows total $50,000, while B's total undiscounted flows are $30,000. At a cost of capital of 12%, the two projects have identical NPVs. Which project's NPV is more sensitive to changes in the cost of capital? Both projects are equally sensitive to changes in the cost of capital since their NPVs are equal at all costs of capital. The solution cannot be determined because not enough information is given. Neither project is sensitive to changes in the company's cost of capital. Project B Project A