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Question 9 The following are two projects a firm is considering: Year 0 1 2 3 4 Project A Project B Cash Flow Cash Flow

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Question 9 The following are two projects a firm is considering: Year 0 1 2 3 4 Project A Project B Cash Flow Cash Flow ($10,000.00) ($11,000.00) $3,000.00 $5,000.00 $4,000.00 $4,000.00 $5,000.00 $4,000.00 $2,000.00 $2,000.00 Further, the firm has capital rationing, and knows that its true reinvestment rate is 20%, while its cost of capital is 11 percent. Given this information, determine the modified net present value (MNPV) for Project B. O $4,084.05 $2.965.10 $2,939,01 $3,479.89 $2.479.00

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