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(10 pts) You are the CFO of a company and have to decide between the following mutually exclusive projects: Year Project A Project B 0

  1. (10 pts) You are the CFO of a company and have to decide between the following mutually exclusive projects:

Year

Project A

Project B

0

-1,000

-$I

1

$I+200

$I+500

2

800

1,200

3

1,100

1,500

Assume the discount rate is 10%. What is the range of the initial investment I for which Project A is more financially attractive than Project B (i.e. NPVA>NPV_B)?

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