2. Your firm is considering investing in one of two mutually exclusive projects. Project A requires an initial outlay of $3,500 with expected future cash flows of $2,000 per year for the next three...

Extracted text: 2. Your firm is considering investing in one of two mutually exclusive projects. Project A requires an initial outlay of $3,500 with expected future cash flows of $2,000 per year for the next three years. Project B requires an initial outlay of $2,500 with expected future cash flows of $1,500 per year for the next two years. The appropriate discount rate for your firm is 12%. Draw the timeline of two chain cycles for project A. Compute the NPV of the two chain cycles for project A. b. а. Draw the timeline of three chain cycles for project B. Compute the NPV of the three chain cycles for project B. Which project would you recommend? с.