Question: Assume Z inc is considering two projects namely project A and project B and wants to calculate NPV for each project. Both project A &

Assume Z inc is considering two projects namely project A and project B and wants to calculate NPV for each project. Both project A & B is four year project and cashflows of both project for four years are given below: year project A yr1 $5,000 yr2 $4,000 yr3 $3,000 yr4 $1,000 and project B yr1 $1,000 yr2 $3,000 yr3 $4,000 yr4 $6,750. The firm's cost of capital is 10% for each project and the initial investment is $10000. Calculate the NPV of each project and determine in which project the firm should invest.

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