Question: RadCo is considering two projects. The first, project A , has $ 4 0 0 , 0 0 0 income after the first year which

RadCo is considering two projects. The first, project A, has $400,000 income after the
first year which increases by 8% each year for a total of 5 years. Project B has $450,000
income after the first year which increases by $25,000 each year for a total of 5 years.
RadCo can only choose one project. Based on present worth today, which project
should RadCo choose? The interest rate is 6% annual compounded annually.

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