Question: Please calculate NPV for both projects and clarify which project should be selected? (10 points) Project A Project B Initial investment 200 000 (outflow) Initial
Please calculate NPV for both projects and clarify which project should be selected? (10 points) Project A Project B Initial investment 200 000 (outflow) Initial investment 280 000 (outflow) Net cash flow per year - Net cash flow per year - 1. 180 000 1. 190 000 2. 100 000 2. 210 000 3. 135 000 3. 230 000 4. 190 000 4. 290 000 Required rate of return for the first 2 years 1.5% Required rate of return for the first 2 years 1.5% Required rate of return for the second 2 years 3% Required rate of return for the second 2 years 3%
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