13 A five year project, Project A, will generate net cash inflows of $100,000. The factor for the Present Value of an Ordinary Annuity figure is 3.79079, for 10%, five years. This project costs $400,000 to undertake, meaning the net present value is negative. It is The company markets itself as one-stop shopping. As a result, if the project is not taken, another project, Project B, will suffer a lower annuity of cash flows over the five years. What annuity of reduce net cash flow might Project B suffer, to make it worthwhile to take on Project A? a. $26,380 b. $4,184 c. $5,519 d. $0 O a Ob Oc d Question 14 What is the effect of having a lower discount rate when evaluating a set of future cash flows? a. the present value is lower b. the present value is higher c it depends on the length of project d. the future value is higher O a Ob