1. Xaviera noticed that two mutually exclusive projects, A and B, have the same payback period and the same economic life, but A has a larger present worth than B does. Wha t can be said about the size of the annual savings for the two projects?
2. Tvo plans have been proposed for accumulating money for capital projects at Bobbin Bay Lighting. One idea is to put aside 100 000 rupees per year, independent of growth. The second is to start with a smaller amount, 80 000 rupees per year, but to increase this in proportion to the expected company growth. The money will accumulate interest at 10%, and the company is expected to grow about 5% per year. Which plan will accumulate more money in 10 years?