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JC Inc. must install a new air-conditioning unit in its main plant. It is evaluating two different models: A and B; both are expected to

JC Inc. must install a new air-conditioning unit in its main plant. It is evaluating two different models: A and B; both are expected to last six years and are equally efficient. The cash flows (in millions) are listed below. JCs WACC is 8%. What unit would you recommend? If WACC changes to 10%, which unit would you recommend?

t =

0

1

2

3

4

5

6

A

-150

-125

-125

-175

-175

-200

-200

B

-550

-55

-55

-75

-75

-100

-100

Group of answer choices

Indifferent

B ; B

A; B

B ; A

A ; A

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