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The table below gives the cashflows of mutually exclusive projects C and D: Project C D Required 0 ($1,000) ($1,000) 1 $200 $200 2

 

The table below gives the cashflows of mutually exclusive projects C and D: Project C D Required 0 ($1,000) ($1,000) 1 $200 $200 2 $1,200 $200 a) Which project will you choose if the cost of capital is lower than 20%? b) Which project will you choose if the cost of capital is greater than 20%? 3 $0 $1,200

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