Question: You are presented with two proposals, A and B, with equal risks that require initial investments of $9,000 and $7,000. Subsequent net cash inflows are

 You are presented with two proposals, A and B, with equal

You are presented with two proposals, A and B, with equal risks that require initial investments of $9,000 and $7,000. Subsequent net cash inflows are given as follows: (a) Assuming 14\% cost of capital, rank the two projects in terms of: (i) Internal rate of return, and (ii) Net present value. (b) How do you account for the differences in ranking? Which project do you prefer? Why

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