18. Suppose you are the CEO of a firm considering two mutually exclusive investment projects. Your financial analysts provided the following (incomplete) forecasts of the projects cash flows. Project A requires an investment of $3,000, pays off $5,000 in 2 years, and has a cost of capital of 11%. Project B requires an investment of $4,000 and has a cost of capital of 9%. What cash flow X would Project B need to offer in year 3 to make you indifferent between the two projects?

Year Project A Project B 0 -$3,000 -$4,000 1 0 0 2 $5,000 0 3 0 X

A. $6,232.10 B. $6,550.40 C. $6,917.63 D. $8,586.76