A company evaluates two investments. The company has a tax rate of 22% and a loan interest rate of 4%. The company's capital structure, which also reflects the financing of the investment, is 30% equity and 70% debt (bank loans). The risk-free interest rate over the term of the investment is 1.5% and the expected return on the market portfolio over the term is 10%. The investment risk profile (beta) is 2.26. Free cash flow to the company for each investment below. Rank the alternatives and give a recommendation with motivation to the company management. Comment on the choice of method and its advantages / disadvantages.

0 1 3 4 16 -10 000 12 000 13 500 3 250 3 000 2 750 12 500 cashflow maskin A -5 000 1 750 |3 250 3 000 cashflow maskin B