Wreathfield, Inc. is choosing between two mutually exclusive projects. The cash flows for the two projects are below. The firm has a cost of capital of 12%, and the risk of the projects is equivalent to the average risk of the firm.
Wreathfield should accept:

A Neither project J nor project K.

explanation

Project J: I/Y = 12; CF0 = (12,000); CF, = 4,000; CF2 = 5,000; CF3 - 6,000; CPT NPV = -172.
Project K: same process. NPV = -1,025

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