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Your firm is considering one of two projects for investment. Project A costs $ 1 0 , 0 0 0 and will bring cash flows
Your firm is considering one of two projects for investment. Project A costs $ and will bring cash flows of $ for years. Project B costs $ and will yield cash flows of $ for years.Given that these two projects do not have the sameproductive lives and your firm's cost of capital is which project should you select and why? Because its equivalent annual benefit is higher, choose project A Because its equivalent annual benefit is higher, choose project B Because its NPVis higher, choose project B Because its NPVis higher, choose project A Because the initial investment is lower, choose project B
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