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9. Imagine that there are two projects - P1, P2. Both last for two periods, y1, and y2, and both projects provide equal amounts of
9. Imagine that there are two projects - P1, P2. Both last for two periods, y1, and y2, and both projects provide equal amounts of benefits over their lifetime: $100 worth of benefit in y1 and another $100 worth of benefit in y2. Moreover, Project P1 costs $50 in y1 and another $50 in y2. In contrast, Project p2 costs $100 in y1 and 0 in y2. You are tasked to conduct a cost-benefit analysis and select one project out of the two. Now the question is: which one would you select, and why? (Marks will depend on the justification of your position, not on selecting the project. In your answer, do not repeat the question)
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