Question: Please answer within 30 mints ABC Ltd is considering two projects, having features as under: P R O J E C T A P R

Please answer within 30 mints

ABC Ltd is considering two projects, having features as under:

P R O J E C T A P R O J E C T B
PERIOD COST CASH FLOW COST CASH FLOW
0 9000 - 12,000 -
1 5,000 5,000
2 4,000 5,000
3 3,000 8,000

For each project, find its NPV using a discount rate of 15% . What is your recommendation if projects are mutually exclusive and why?

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