Question: 3) Suppose Boston Corporation is evaluating two projects, represented by the following cash flows: Project B $400 Project A -$400 100 Initial Cost (t-0) Yr

3) Suppose Boston Corporation is evaluating two projects, represented by the following cash flows: Project B $400 Project A -$400 100 Initial Cost (t-0) Yr 1 after tax cash flow Yr 2 after tax cash flow Yr 3 after tax cash flow Yr 4 after tax cash flow Yr 5 after tax cash flow 400 100 100 100 100 100 100 100 10.000 Which project should be accepted? Determine payback period, NPV and IRR. Assume a cost of capital of 10%. Page 6 of 6

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