If there is no capital rationing problem, which of the following mutually exclusive projects should be accepted?

Project A: NPV = $8,000; NINV = $55,000

Project B: NPV = $11,000; NINV = $110,500

Question options:

Neither A nor B

A

B

Both A and B

D&D, Inc., plans to build a new toll way. The cost (NINV) of the project is expected to be $2.1 billion. Net cash inflows are expected to equal $351 million per year. How many years must the firm generate this cash inflow stream for investors to earn their required 16 percent rate of return?

Question options:

Around 19 years

Around 21 years

Around 9 years

Around 15 years