Delta LLC is looking at two mutually exclusive investments. The quarterly cash flows of each Project are shown in the following table.

	Expected Net Cash Flow
Period	Project A	Project B
0	(800)	(900)
1	400	135
2	(193)	700
3	800	(250)
4	600	300
5	600	400
6	850	0
7	(180)	100

a. Delta has a cost of capital of 9%. Should they select project A or B? Why?

b. If the cost of capital for both Project A and Project B is 14%, would this make any difference in Deltas decision making? Why or why not?