Question: Suppose you are evaluating two mutually exclusive projects. A AND B , with the follwoing cash flow: a) If the cost of capital on both
Suppose you are evaluating two mutually exclusive projects. A AND B , with the follwoing cash flow: a) If the cost of capital on both project is 5%, which project , if any, would you choose? why? b) If the cost of capital on both projects is 10%, which project, if any, would you choose? why year A B 2000 -$10,000 -$10,000 2001 3,503 0 2002 3,503 0 2003 3,503 0 2004 3,503 19,388
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