Question: Please calculate NPV for both projects and clarify which project should be selected? Project A Initial investment 200 000 (outflow) Net cash flow per year
Please calculate NPV for both projects and clarify which project should be selected? Project A Initial investment 200 000 (outflow) Net cash flow per year 1.180 000 2. 100 000 3.135000 4.190000 Required rate of return for the first 2 years 1.5% 1.5% Required rate of return for the second 2 years 3% Project B Initial investment 280 000 (outflow) Net cash flow per year - 1. 190 000 2,210000 3.230000 4.290000 Required rate of return for the first 2 years 1.5% Required rate of return for the second 2 years 3%
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