The Roger Company has the choice between two different types of die. One type cost less, but it also has a shorter life expectancy. the expected cash flows after taxes for the two diferent dies are as follows:
Period 0 1 2 3 4
A (10000) 8000 8000
B (12000) 5000 5000 5000 5000
The hurdle rate for this project is 10 percent.