The following information relates to questions A16 & A17: Quanto Lid are considering two new projects, project A and project B. The following cashflows have been established for each of the projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Project A (300,000) 75,000 92,000 103,000 95,000 82,000 Project B (250,000) 80,000 81,000 83,000 74,000 64,000 The company uses a cost of capital for investment appraisal of 12%. There is no scrap value for the investments at the end of year 5