Your company is presented with two possible construction projects:

$$ Project A has a construction time of $4$ years, cost of $1\mathrm{.}5$M$/$year and sale

value of $7$M$.$

$$ Project B has a construction time of $7$ years, cost of $1$M$/$year and sale

value of $9$M$.$

Assume costs are incurred at the end of each year.

$($i$)$ Evaluate which project is more attractive. Use your company$$s weighted

cost of capital of $6\%$ as the discount rate.

$($ii$)$ What is your recommendation regarding this investment? Provide

calculations to justify your recommendation.

$($iii$)$ How would the discounting rate factors affect your thinking about the

discount rate applied?