Question: You are provided with the following data on two mutually exclusive projects. The cost of capital is 13%. Initial cash outflow Year 1 cash inflow

 You are provided with the following data on two mutually exclusive

You are provided with the following data on two mutually exclusive projects. The cost of capital is 13%. Initial cash outflow Year 1 cash inflow Project 1 -$9,000 $9,000 $4,500 $2,489 Project 2 -$1,000 $1,000 $ 925 $ 609 1.61 Year 2 cash inflow NPV PI 1.28 Which project should you accept? What is the problem that you should be concerned with in making this decision? Project 1; the timing of cash flows Project 1: project scale Project 2, the timing of cash flows O Project 2: project scale

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