A firm has to decide between two projects that cost $10,000 each. Project A will provide a revenue $10,700 one year from now, while Project B will provide a revenue of $12,200 two years from now. The interest rate is 10% per year. This firm

A) chooses project A.
B) chooses project B.
C) rejects both projects.
D) is indifferent between projects A and B.


B

Economics

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Economics