Suppose that you have two mutually exclusive projects. A and B. Project A has cash flows...

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Finance

Suppose that you have two mutually exclusive projects. A and B.Project A has cash flows of CF0, CF1, CF2, CF3, CF4, CF5. (Years0-5). Project B has cash flow of CF0, CF1, CF2, CF3. The discountrate for the projects is 10.5%.
a) Analyze these two projects and recommend a project toaccept.
b) Carefully outline all your analysis and reasoning and discussyour methodologies for arriving at your solution in detail.
Project A
Project B
CF0
(4,650.00)
(8,300.00)
CF1
830.00
5,500.00
CF2
1,355.00
5,500.00
CF3
1,750.00
5,500.00
CF4
2,825.00
CF5
3,250.00

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Suppose that you have two mutually exclusive projects. A and B.Project A has cash flows of CF0, CF1, CF2, CF3, CF4, CF5. (Years0-5). Project B has cash flow of CF0, CF1, CF2, CF3. The discountrate for the projects is 10.5%.a) Analyze these two projects and recommend a project toaccept.b) Carefully outline all your analysis and reasoning and discussyour methodologies for arriving at your solution in detail.Project AProject BCF0(4,650.00)(8,300.00)CF1830.005,500.00CF21,355.005,500.00CF31,750.005,500.00CF42,825.00CF53,250.00

	Project A	Project B
CF0	(4,650.00)	(8,300.00)
CF1	830.00	5,500.00
CF2	1,355.00	5,500.00
CF3	1,750.00	5,500.00
CF4	2,825.00
CF5	3,250.00