Question: You are considering two independent projects. Both projects have a discount rate of 1 8 percent. You have sufficient funds. However, you cannot repeat or

You are considering two independent projects. Both projects have a discount rate of 18 percent. You have sufficient funds. However, you cannot repeat or replicate these projects more than once. Project A requires an initial investment of $250,000 and generates a cash flow of $120,000 a year for years 1 to 3. Project B requires an initial investment of $160,000 and generates a cash flow of $80,000 a year for years 1 to 3. Which project or projects, if either, should you accept and why?

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