Question 7: A small business has a choice of investing $20 000 in one of two projects. The revenue flows from the two projects during the next 4 years are listed in the following table. (20) Revenue($)
End of year
Project A
Project B
1
6 000
10 000
2
3 000
6 000
3
10 000
9 000
4
8 000
1 000
Total
27 000
26 000
● If the interest rate is 11% compounded annually, which of these two projects would you advise the company to invest in?

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