South Dakota Technology has a weighted-average cost of capital of 8.72 percent and is evaluating two projects: A and B. Project A involves an initial investment of $36,900.00 and an expected cash flow of $63,800.00 in 4 years. Project A is considered more risky than an average-risk project at South Dakota Technology, such that the appropriate discount rate for it is 5.92 percentage points different than the discount rate used for an average-risk project at South Dakota Technology. The internal rate of return for project A is 10.30 percent. Project B involves an initial investment of $70,400.00 and an expected cash flow of $110,600.00 in 5 years. Project B is considered less risky than an average-risk project at South Dakota Technology, such that the appropriate discount rate for it is 1.76 percentage points different than the discount rate used for an average-risk project at South Dakota Technology. The internal rate of return for project B is 9.49 percent. What is X if X equals the NPV of project A plus the NPV of project B?

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$6092.37 (plus or minus $10 ) $17022.87 (plus or minus $10 ) $11177.77 (plus or minus $10 ) $8642.05 (plus or minus $10 ) None of the above is within $10 of the correct ans