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1 Consider two alternative water resource projects, A and B. Project A will cost $2,533,000 and will return $1,000,000 at the end of 5 years and...

4.1 Consider two alternative water resource projects, A and B. Project A will cost $2,533,000 and will return $1,000,000 at the end of 5 years and $4,000,000 at the end of 10 years. Project B will cost $4,000,000 and will return $2,000,000 at the end of 5 and 15 years, and another $3,000,000 at the end of 10 years. Project A has a life of 10 years, and B has a life of 15 years. Assuming an interest rate of 0.1 (10%) per year:

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