Question: There are two potential projects. As a CEO, you have to choose one of them. The expected cash flows are as below. Importantly, the shareholders

There are two potential projects. As a CEO, you have to choose one of them. The expected cash flows are as below. Importantly, the shareholders really want you to make the investment decision based on the constant annual cash flow generated by a project over its lifespan if it was an annuity. Which project should you take? Explain why.

	Project A	Project B
Year
0	-900	-900
1	500	550
2	600	600
3	685
Discount rate	0.09	0.39

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