$2118$ points

The EIM Inc. is trying to decide between two projects. Project A requires a current expenditure of $$10,000,$ while Project B requires a current expenditure of $$8,000.$ Project A will generate income of $$2,000$ per year for the next $8$ years. Project B is expected to return $$7,000$ at the end of year $1,$$$5,000$ at the end of year $2,$ and $$3,000$ at the end of year $3.$ What is the NPV for each of the two projects if capital costs are $5\%$ and which project should be selected?