Q14

Company OPQ has the choice between 2 mutually exclusive projects. Project A costs initially 40,000 and generates 15.000 net cash flows (NCF) for the following 5 years. Project B requires an initial financing of 11,000 and generates 6,500 net cash flows (NC) for the following 10 years. Which of the projects should OPQ choose, taking into account the difference in lifespan between the projects and knowing that its weighted average cost of capital (WACC) is 9%? Project B No answer Not solvable based on the above data Project A Project A and Project B