In: Finance
Project A Project B
Year 0 ($60,000) ($85,000)
Year 1 $20,000 $22,000
Year 2 $35,000 $25,000
Year 3 $20,000 $30,000
Year 4 $25,000 $25,000
Year 5 $15,000
Year 6 $10,000
Year 7 $10,000
Year 8 $10,000
Assume that, if needed, each project is repeatable with no change in cash flows. Your cost of capital is 13%.