Question: Question 4 (2.5 points) A firm is considering two projects, Project A and Project B. The projects are independent and the cash flows are shown

 Question 4 (2.5 points) A firm is considering two projects, Project

Question 4 (2.5 points) A firm is considering two projects, Project A and Project B. The projects are independent and the cash flows are shown below: 0 1 2 3 4 -50 YEAR PROJECT A PROJECT B 20 20 15 10 -60 25 15 25 12 If the cost of capital is 14%, what is the correct decision for the firm? Reject both projects. Reject project A and accept project B. Accept project A and accept project B. Accept project A and reject project B

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