a) Although projects A and B below have the same initial cost ($35, 000), their cash flows perform differently over the four-year period.

Year Cash-Flow Project A Cash-Flow Project B

0 ($35,000) ($35,000)

1 $ 20,000 $ 10,000

2 $ 15,000 $ 10,000

3 $ 10,000 $ 15,000

4 $ 10,000 $ 20,000

i) Given that the discounting factor is 20%, determine the Net Present Value for both projects. (7 Marks)

ii) Your project firm has asked you as the project manager to determine which of the two projects is more viable. Account for your preferred choice of project.

(3 Marks)