. The data shown below

T	Project A	Project B
0	18	6
1	0	2
2	0	2
3	5	2
4	6	2
5	7	2
6	8	0
7	9	0
8	10	0

The example shows the expected cash flows of two hypothetical projects. The cash flows are expressed in nominal terms, i.e. the expected money values to be received in the future. These values correspond to the profits expected in the future time periods. Given a discount rate of 10%,

find: a) The net present value (NPV) of each project.

b) Suppose Project A was considered the riskier and, as a consequence, the discount rate for this project was set at 16% (Project B remains at 10%) which project should be undertaken if they are mutually exclusive.

c) Would your decision still hold if Project A were discounted at 18%?