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.
• Use Microsoft Excel to prepare your 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 $20,000 in each of the first 3 years.

I am looking for the formulas to use. I believe I am using them incorrectly. Thanks!