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You are considering the following projects and can take only one. Your cost of capital is 1 1 % . What is the NPV of

You are considering the following projects and can take only one. Your cost of capital is 11%. What is the NPV of each project at your cost of capital? What is the IRR of each project? At what cost of capital are you indifferent between the two projects? What should you do? Project A -0 year -100,1 year 25,2 year 30,3 year 40,4 year 50. Project B -0 year -100,1 year 50,2 year 40,3 year 30,4 year 20.

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