Question: Cashflow for project A and B. Year Project A (N$) Project B (N$) 0 (450) (500) 1 150 200 2 120 110 3 150

Cashflow for project A and B. Year Project A (N$) Project B

Cashflow for project A and B. Year Project A (N$) Project B (N$) 0 (450) (500) 1 150 200 2 120 110 3 150 170 4 100 150 a) By using the payback method, determine which project should be chosen. b) (5) By using the discounted payback method at the rate of 12%, determine which project should be chosen. c) (9) By using the Net Present Value (NPV) method, determine, which project should be chosen if projects A are discounted at 12 percent and B are discounted at 10 percent. (11)

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