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Stark Industries is considering two mutually exclusive projects. Both require an initial outlay of $27,500. Project A will produce expected cash flows of $17,000 per
Stark Industries is considering two mutually exclusive projects. Both require an initial outlay of $27,500. Project A will produce expected cash flows of $17,000 per year for years 1 through 5, whereas, project B will produce cash flows of $18,500 per year for years 1 through 5. The required rate of return for project A is 13.5% and the required rate of return for project B is 14.5%. What is each projects risk-adjusted net present value? Round your answer to the nearest dollar.
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