Question: Evaluate two investment projects using the net present value (NPV) method. Project A requires an initial investment of $100,000 and generates cash flows of $30,000

Evaluate two investment projects using the net present value (NPV) method. Project A requires an initial investment of $100,000 and generates cash flows of $30,000 annually for five years. Project B requires an initial investment of $150,000 and generates cash flows of $40,000 annually for five years. The discount rate is 10%.

Project

Initial Investment

Cash Flows (Annual)

NPV

Project A

$100,000



Project B

$150,000



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