Question: Section A A firm is considering Projects A and B. These projects are at the same risk level, and only one should be chosen. If

Section A A firm is considering Projects A and B. These

Section A A firm is considering Projects A and B. These projects are at the same risk level, and only one should be chosen. If the wrong project is selected, how much potential value would the firm lose? Cash flows are shown below. WACC: 7.75% 0 1 2 3 4 $380 $380 $380 CFA -$1,025 $380 CFB -$2,150 $765 $765 $765 $765

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