Calculate the project cash flow generated for Project A and Project B using the NPV method.

Which project would you select, and why?

Which project would you select under the payback method?

The discount rate is 10% for both projects.

Project A: Initial investment: $10,000 year 1: $5,000 year 2: $5,000 Year 3: $5,000

Project B: Initial investment: $55,000 y1: $20,000 y2: $20,000 y3: $20,000