Suppose you are evaluating two mutually exclusive projects, Project A and Project B, with the following cash flows:

End-of-year cash flows

Year	Project A	Project B
2000	-10,000	-10,000
2001	3,293	0
2002	3,293	0
2003	3,293	0
2004	3,293	14,641

(a) if the cost of capital on both project is 5%, which project, if any would you choose? Why?

(b) if the cost of capital on both project is 8%, which project, if any would you choose? Why?

(c) If the cost of capital on both project is 11%, which project, if any would you choose? Why?

(d) If the cost of capital on both project is 14%, which project, if any would you choose? Why?

(e) At what discount rate would you be different between choosing Project A and Project B?