Suppose you are evaluating two mutually exclusive projects, Thing 5 and Thing 6, with the following cash flows:

(a)
If the cost of capital on both projects is 0%, which project, ifany, would you choose? Why?
(b)
If the cost of capital on both projects is 10%, which project, ifany, would you choose? Why?
(c)
If the cost of capital on both projects is 15%, which project, ifany, would you choose? Why?
(d)
If the cost of capital on both projects is 20%, which project, ifany, would you choose? Why?
(e)
At what discount rate would you be indifferent between choosing Thing 5 and Thing 6?
(f)
On the same graph, draw the investment profiles of Thing 5 and ThingLO2 

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End-of-year cash flows Year Thing 5 Thing 6 2000 -$10,000 -$10,000 2001 2,000 0 2002 5,000 0 2003 6,000 13,500