Comparing Investment Criteria [LO1, 2, 3, 5, 7] Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0 -$262,000 -$37,400
1 34,000 18,000
2 50,000 16,000
3 50,000 16,000
4 329,000 12,000
Whichever project you choose, if any, you require a return of 11 percent on your investment.