We shall use the same basic problem to illustrate the application of all the techniques described in this chapter. The problem concerns the Bennett Company, a medium-sized metal fabricator that is currently contemplating two projects-projects A, requiring an initial investment of $42,000, and project B, requiring an initial investment of $45,000. The projected incremental (relevant) operating cash inflows for the two projects are presented in Table 9.1. The projects exhibit conventional cash flow patterns, which are assumed throughout the text. In addition, we continue to assume that all project’s cash flows have the same level of risk, that projects being compared