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project a: CF0= -$12,720; CF1= $5,650; CF2=$8,150; CF3=$14,750 Project b CF0= -15,070$; CF1= $3,930; CF2= $5,270; CF3= $14,320 CF4= 12,331$ Project a and project b

project a: CF0= -$12,720; CF1= $5,650; CF2=$8,150; CF3=$14,750

Project b CF0= -15,070$; CF1= $3,930; CF2= $5,270; CF3= $14,320 CF4= 12,331$

Project a and project b are mutually exclusive. the appropriate discount rate is k=12% which project should the firm invest?

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