You are provided with the following data on two mutually exclusive projects. The cost of capital is 15%. I need to learn steps with BA ll plus calculator if needed.

	Project 1	Project 2
Initial cash outflow	-$5,000	-$1,000
Year 1 cash inflow	$5,000	$1,000
Year 2 cash inflow	$2,500	$ 850
NPV	$1,238	$ 512
PI	1.25	1.51

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 2; the timing of cash flows
		Project 1; project scale
		Project 2; project scale