Caledonia Corp is considering two additional mutually exclusive projects.

Caledonia
Corp is considering two additional mutually exclusive projects. The
cash flows associated with these projects are as follows:

Year Project A Project B

0 -$100,000 -$100,000

1 32,000 0

2 32,000 0

3 32,000 0

4 32,000 0

5 32,000 $200,000

The required rate of return on these projects is 11 %.