Question: Please answer the question below... A companies is evaluating two investment projects whose cash flows ar elisted below Point in time Project A Project B

Please answer the question below...

A companies is evaluating two investment projects whose cash flows ar elisted below

Point in time Project A Project B
0 -120 000 -120 000
1 60 000 15 000
2 45 000 45 000
3 42 000 55 000
4 18 000 60 000

The company's required rate of return is 15%

1.1 Advise the company whether to undertake the two projects. (6 marks)

1.2 Indicatee the maximum outlay at time 0 for each project before it ceases to be viable

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