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You are considering the following mutually exclusive projects: Project A: 10,000 initial cost, then, 6,500 year 1; 4,000 year 2; 1,800 year 3 Project B:

You are considering the following mutually exclusive projects:

Project A: 10,000 initial cost, then, 6,500 year 1; 4,000 year 2; 1,800 year 3

Project B: 12,000 initial cost, then, 7,000 year 1; 4,000 year 2; 5,000 year 3

Assume a 15% discount rate for both projects. What is the NPV of each project and which would you select?

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