1. Washington Technology has a weighted-average cost of capital of 8.44 percent and is evaluating two projects: A and B. Project A involves an initial investment of $35,800.00 and an expected cash flow of $65,000.00 in 4 years. Project A is considered more risky than an average-risk project at Washington Technology, such that the appropriate discount rate for it is 5.83 percentage points different than the discount rate used for an average-risk project at Washington Technology. The internal rate of return for project A is 10.61 percent. Project B involves an initial investment of $71,200.00 and an expected cash flow of $111,100.00 in 5 years. Project B is considered less risky than an average-risk project at Washington Technology, such that the appropriate discount rate for it is 1.94 percentage points different than the discount rate used for an average-risk project at Washington Technology. The internal rate of return for project B is 9.88 percent. What is X if X equals the NPV of project A plus the NPV of project B?

   		$12212.53 (plus or minus $10)
   		$5786.47 (plus or minus $10)
   		$19439.75 (plus or minus $10)
   		$14097.40 (plus or minus $10)
   		None of the above is within $10 of the correct answer