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Yellow Sand Health has a weighted-average cost of capital of 9.9 percent and is evaluating two projects: A and B. Project A involves an initial

Yellow Sand Health has a weighted-average cost of capital of 9.9 percent and is evaluating two projects: A and B. Project A involves an initial investment of 6,914 dollars and an expected cash flow of 11,270 dollars in 8 years. Project A is considered more risky than an average-risk project at Yellow Sand Health, such that the appropriate discount rate for it is 0.82 percentage points different than the discount rate used for an average-risk project at Yellow Sand Health. The internal rate of return for project A is 6.3 percent. Project B involves an initial investment of 5,074 dollars and an expected cash flow of 7,763 dollars in 3 years. Project B is considered less risky than an average-risk project at Yellow Sand Health, such that the appropriate discount rate for it is 2.05 percentage points different than the discount rate used for an average-risk project at Yellow Sand Health. The internal rate of return for project B is 15.23 percent. What is X if X equals the NPV of project A plus the NPV of project B?

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