Question: 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
Calculatethe 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.
- Use MicrosoftExcelto prepare the answer.
- Note that a similar problem is in the textbook in Section 5.1.
Sample Template for Project A and Project B:
"Table showing investments and returns for Project A and Project B.Project A has $10,000 initial investment with $5,000 returns in each of the first 3 years.Project B has $55,000 initial investment with $20,000in each of the first 3 years."
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