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7. Consider the following three projects. Period Project A Project B Project T=0 ($5,000) ($9,000) (S4,000) T=1 $2,000 $1,500 $900 T-2 $1.200 $2,500 $900 T-3

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7. Consider the following three projects. Period Project A Project B Project T=0 ($5,000) ($9,000) (S4,000) T=1 $2,000 $1,500 $900 T-2 $1.200 $2,500 $900 T-3 $1.800 $2.500 $900 T 4 $1,800 $2,500 $2,500 TS $4.800 $4,500 $2,500 When you have only $9,000 to support the above projects, which project (or projects) should be chosen under NPV method and explain WHY? Use 8 percent discount rate. (8 points)

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