Question: John is evaluating two mutually exclusive capital budgeting projects that have the following characteristics: Cash Flows Year Project Q $(10,000) Project R $(10,000) 0 5,000

John is evaluating two mutually exclusive capital budgeting projects that have the following characteristics: Cash Flows Year Project Q $(10,000) Project R $(10,000) 0 5,000 5,000 5,000 4 22,000 5,000 1) Calculate NPV of each project if the firm's required rate of retum (t) is 9 percent. 2) which project should be purchased

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