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Your division is considering two facility investment projects, each of which requires an up-front expenditure of...

Your division is considering two facility investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investments will produce the following net cash flows: Year Project A Project B 1 $5,000,000 $20,000,000 2 $10,000,000 $10,000,000 3 $20,000,000 $6,000,000 What are the project's net present values, assuming the cost of the capital is a)10% b)5% )15%? What does this analysis tell you about the projects?

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