KKR Ltd. is evaluating two independent projects: North and South. The costs and expected cash flows are given in the following table. The company's cost of capital is 10 percent. Using the NPV as the only available decision criterion, which project(s) would you accept?

Year North South

0 $(312,500) $(395,000)

1 $121,450 $153,552

2 $121,450 $158,711

3 $121,450 $166,220

4 $121,450 $132,000

5 $121,450 $122,000

Question 16 options:

a)Project North

b)Project South

c)Both projects

d)Neither of the projects