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highest NPV . The cost of capital is 1 7 . 5 % . a . Find the NPV for each project. Are the projects

highest NPV. The cost of capital is 17.5%.
a. Find the NPV for each project. Are the projects acceptable?
b. Find the break-even cash inflow for each project.
d. Which project is more risky? Which project has the potentially higher NPV? Discuss the risk-return trade-offs of the two projects.
e. If the firm wished to minimize losses (that is, NPV $0), which project would you recommend? Which would you recommend if the goal was achieving a higher NPV?
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