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Considering two Independent projects: Project A and Project B. The cost of capital for Project A is 8% while the cost of capital for Project
Considering two Independent projects: Project A and Project B. The cost of capital for Project A is 8% while the cost of capital for Project B is 11%. Project A has duration of 4 years whereas the duration of project B is 5 years. The estimated yearly cash flows (in millions $) for each project are as follows Year Project A Project B -$600 -$1,000 150 150 2 180 200 3 200 400 260 350 S 380
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