Question: 820 Based on the information above, identify which project (Project A or B) should be accepted? Explain w B D E F G H 4

820 Based on the information above, identify
820 Based on the information above, identify which project (Project A or B) should be accepted? Explain w B D E F G H 4 5 Project A Interest rate Year o Year 1 Year 2 Year 3 Year 5 Year 6 Total 6 Required 15% 7 Outflow ($7,00,000) ($7,00,000) 8 Inflow $2,25,000 $2,25,000 $2,25,000 $2,25,000 $2,25,000 11,25,000.00 9 Net Inflow $2,25,000 $2,25,000 $2,25,000 $2,25,000 $2,25,000 $4,25,000 10 NPV $54,234.90 11 12 13 Project B 14 Required 15% 15 Outflow ($4,00,000) ($4,00,000) 16 Inflow $1,10,000 $1,10,000 $1,10,000 $1,10,000 $1,10,000 $5,50,000 17 Net Inflow $1,10,000 $1,10,000 $1,10,000 $1,10,000 $1,10,000 $1,50,000 18 NPV (531, 262.94) 19 Based on the information above, identify which project (Project A or B) should be accepted? Explain why. By changing the figures in the excel template (above), assume the interest rate for Project A fell to 13%, and Questions: Cash outflow (The initial investment) was $950,000, Cash Inflows was $350,000 per annum for the 6 years, Answer and Net inflows was also $250,000. For Project B, assume interest rate also fell to 13% but Cash outflow, Info and Net Influs remain the came What is the new NPV for each of the proiect? Would you

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