Acorn Co is looking at two mutually exclusive investments. The cash flow details of each Project are shown in the following table.

	Expected Net Cash Flow
Year	Project A	Project B
0	(300)	(405)
1	(387)	134
2	(193)	135
3	(100)	136
4	600	134
5	600	135
6	850	136
7	(180)	0

Acorn has a cost of capital of 7.5%. Should they select project A or B? Why?

If the Hurdle rate for Project B is 17.5%, would this make any difference in Acorn Co