Shell Biotech Corporation is considering two mutually exclusive capital investment projects. Pr0ject 1 costs $75,000, and would produce differential cash ows of $16,200 for each of the next 9 years. Project 2 also costs $75,000, but would produce differential cash ows of $14,000 for each of the next 12 years. If Shell's cost of capital is 11%, which alternative should be chosen? a) Project 1 should be accepted. d) Neither is acceptable. b) Project 2 should be accepted. e) Projects 1 and 2 can not be compared. 0) Both projects should be accepted. Jefferson Corporation is purchasing equipment with a 10year life which will increase revenue by $38,000 per year and increase expenses by $21,000 per year. The cost of the project is $24,000, and the equipment has a salvage value of $9,000 at the end of the tenth year. The project will require a $6,000 investment in net working capital immediately. The equipment will be depreciated for 10 years using simplied straight line. Jefferson's marginal tax rate is 35%. Calculate the total year 10 net cash ow, including both the last annual cash ow and the project's terminal cash ow. a) $23,740 d) $17,740 b) $21,340 e) $11,890 0) $20,890