Questions A 9-Al3 are based on the following Information Two projects have the same time to maturity of 5 years. The projects are mutually exclusive Start-up costs are $20,000 for project (S) and $35,000 for project (1) Cost of capital is 10% for each project Project (5) generates cash flows of 57,500 per year for 5 years. Project (1) generates cash flows of $9.500 per year for 5 years A13. Ir the cost of capital fell to 3% which project would you choose (a) Project S, since at that rate NPVs > NPV (b) Project L, since at that rate NPVs