Question: 1. Compute the EUAB for these cash flows based on a 10% interest rate. (10 pts) 6000 4500 3000 1500 2. Calculate Net Present

1. Compute the EUAB for these cash flows based on a 10%

1. Compute the EUAB for these cash flows based on a 10% interest rate. (10 pts) 6000 4500 3000 1500 2. Calculate Net Present Value (NPV) of the two projects and suggest which of the two should be accepted assuming discounted rate @ 10% (20 pts) Initial Investment Estimated Life Scrap Value Project A $20,000 5 years $1000 Project B 40,000 5 years $2000 Year 1 2 3 4 5 Project A 10,000 20,000 20,000 6000 4000 Project B 30,000 20,000 10,000 6000 4000

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