Integrative Case 2

Your company is evaluating two new projects, Project A and Project B. The following table shows the expected cash flows for both projects.

Expected Cash Flows:

Year	Project A	Project B
0	($150)	($250)
1	$50	$80
2	$60	$90
3	$70	$120
4	$80	$150

Requirements:

1. Calculate the Discounted Payback Period for both projects.
2. Compute the Net Present Value (NPV) for each project using a discount rate of 10%.
3. Find the Internal Rate of Return (IRR) for both projects.
4. Compare the NPVs and IRRs to determine which project is more financially viable.
5. Recommend which project to pursue based on your analysis.