XZ Company is medium sized metal fabricator that is currently contemplating two projects: Project A require...

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XZ Company is medium sized metal fabricator that is currently contemplating two projects: Project A require an initial investment of $ 45,000, Project B require an initial investment of $50,000. Assume the NZ Company has a 10% cost of capital and the relevant cash flows for the two projects are presented in the table below: Project Initial Investment Year 1 2 3 5 Require: a) Calculate the NPV for Project A and B? Project A 45,000 16000 16000 16000 16000 16000 Project B 50,000 Operating Cash Flow 30000 14000 12000 12000 12000 (10 Marks) b) Based on your NPV findings in section (a) which project will you recommend for NZ Company? (5 Marks) Based on your answer in section (b) justify your recommendation? XZ Company is medium sized metal fabricator that is currently contemplating two projects: Project A require an initial investment of $ 45,000, Project B require an initial investment of $50,000. Assume the NZ Company has a 10% cost of capital and the relevant cash flows for the two projects are presented in the table below: Project Initial Investment Year 1 2 3 5 Require: a) Calculate the NPV for Project A and B? Project A 45,000 16000 16000 16000 16000 16000 Project B 50,000 Operating Cash Flow 30000 14000 12000 12000 12000 (10 Marks) b) Based on your NPV findings in section (a) which project will you recommend for NZ Company? (5 Marks) Based on your answer in section (b) justify your recommendation?