The wacc is 12 percent for both projects assume that you


Your company is considering the following two projects, A and B, whose cash flow data are shown in the following table:

Year                A                     B

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0                      -14,000            -18,000

1                          8,000              8,000

2                          6,000              8,000

3                          3,000              8,000

The WACC is 12 percent for both projects. Assume that you have unlimited fund available. If both projects are independent, which project or projects should be purchased?

a. neither project

b. Project A only

c. Both projects

d. Project B only

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Financial Management: The wacc is 12 percent for both projects assume that you
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