Question: You are evaluating two mutually exclusive projects: Project A and Project B. Both projects cost $2,000. Project A has a 2-year life and is expected

You are evaluating two mutually exclusive projects: Project A and Project B. Both projects cost $2,000. Project A has a 2-year life and is expected to produce $1,600 and $900 in year 1 and year 2, respectively. Project B has a 4-year life with an expected cash flow stream of $$600, $700, $800, $700 in Years 1 through 4. The cost of capital is 10%. Which project should you choose?

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