You are considering two mutually exclusive projects, A andB.
Project A costs $70,000 and generates cash flows of $12,000 for10 years.
Project B costs $60,000 and generates cash flows of $2,000 forsix years and then cash flows of $29,000 for four years.
Which project would you accept if your discount rate was 10%?Which project would you accept if your discount rate was 5%?
