Question: QUESTION 2 (10 marks) You are considering two pollution control options (Project A and Project B) to meet new regulatory standards. Both options would be

QUESTION 2 (10 marks) You are considering two pollution control options

QUESTION 2 (10 marks) You are considering two pollution control options (Project A and Project B) to meet new regulatory standards. Both options would be repeated indefinitely and have a discount rate of 10%. Project A has a 5-year life and an NPV of -$2.78 million. Project B has a 9-year life and an NPV of -$4.10 million. Which option(s) would you choose? Explain and justify your decision. (10 marks)

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