Question: Acme Mfg. is considering two projects, A & B, with cash flows as shown below: period CFA CFB 0 -80,000 -100,000 1 20,000 60,000 2

Acme Mfg. is considering two projects, A & B, with cash flows as shown below: period CFA CFB

0 -80,000 -100,000

1 20,000 60,000

2 30,000 25,000

3 20,000 25,000

4 20,000 25,000

The opportunity cost of capital is 12%. Calculate the PBP, NPV, and PI for each project. And which project(s) should be accepted in each of the following situations:

(1) The projects are mutually exclusive and there is no capital constraint.

(2) The projects are independent and there is no capital constraint

--------------- Please Solve As soon as Solve quickly I get you thumbs up directly Thank's Abdul-Rahim Taysir

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