As part of a capital budgeting process, you have collected the following information concerning two mutually exclusive projects.

	Project A	Project B
Initial Investment Required	$60,000	$45,000
Cash Flow Per Year	$11,000	$8,600
Project's Life	15 Years	15 Years
Cost of Capital	12%	12%
Net Present Value	$14,919	$13,573
Internal Rate of Return	16.47%	17.38%

A. What is the indifference point between the projects?

B. Which project would you choose?

EXPLAIN THE PROCESS, DO NOT USE EXCEL