Giant Equipment Ltd. is considering two projects to invest next year. Both projects have the samestart-up costs. Project A will produce annual cash flows of $42,000 at the beginning of each year foreight years. Project B will produce cash flows of $48,000 at the end of each year for seven years. Thecompany requires a 12% return. a. Which project should the company select and why? b. Which project should the company select if the interest rate is 14% at the cash flows in Project Bis also at the beginning of each year?

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Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.