Question: 4. ABC Company is considering two mutually exclusive projects. Both require an initial investment of $50,000 each and have a life of five years. The
4. ABC Company is considering two mutually exclusive projects. Both require an initial investment of $50,000 each and have a life of five years. The cost of capital of the company is 10% and the estimated net cash inflows of the two projects are as follows: Year Project B 1 Project A 20,000 22,000 30,000 2. 3 28,000 27,000 22,000 25,000 20,000 4 4 5 25,000 30,000 Which project should be accepted as per a. Discounted Payback method b. Net Present Value methods C. Internal Rate of Return (4.3M)
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