5) Projects A and B differ in maturity and the riskiness of the cashflows. Explain how. How should these differences affect how you evaluate them? Illustrate.

Capital budgeting projects for next quarter: Life Cost Unit Capacity A 2-yr $727,632 100,000 B 3-yr $608,088 120,000 Overhead Saving $11,725 -$9,995 Unit Labor sav., Qtr.7 $0.90 Change/Qtr. Labor Sav. $0.00 -$0.03 $1.01 Capital budgeting projects for next quarter: Life Cost Unit Capacity A 2-yr $727,632 100,000 B 3-yr $608,088 120,000 Overhead Saving $11,725 -$9,995 Unit Labor sav., Qtr.7 $0.90 Change/Qtr. Labor Sav. $0.00 -$0.03 $1.01