>>Comparing Projects with unequal lives using NPV infinity

Question: Select one best project out of the following two projects. Keep in mind that the projects have unequal lives. Use NPV infinity formula to compute and compare the two projects:

Year	Project A	Project B
0	100,000	100,000
1	50,000	30,000
2	80,000	40,000
3	-	50,000

Cost of capital=5%

Guidelines:

-Solve the question by using NPV infinity formula:

NPV (0) = NPV X (1 + i)" (1 + i)n - 1