Question: Suggest whether projects A and B are more sensitive to initial investment or the discount rate employed in each project Company DEF is considering to

Suggest whether projects A and B are more sensitive to initial

Suggest whether projects A and B are more sensitive to initial investment or the discount rate employed in each project

Company DEF is considering to invest into two mutually exclusive projects. The financial manager has collected the following data for each of the projects: This company uses a straight-line depreciation method and has estimated the annual depreciation for project B to be 35,000. The company does not pay any corporation tax. Company's cost of capital is 9%

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