PopEar Chicken is considering two potential projects, The Management Team under Jane has decided to present the cash flows from two recent proposals the Lowasugar project and the Boostametabol project All figures are in thousands of dollars Time of Cash Flow Lowasugar Boostametabol Investment $17,500 $15,500 Year 1 2,000 7,000 Year 2 3,700 5,500 Year 3 6,250 3,075 Year 4 7,000 3,200 Year 5 4,000 2,000 State and explain the decision rule behind the NPV method Compute the net present value (NPV) for each project by using a discount rate of 8 79 for projects of average risk Which of the two projects is more profitable

Question: PopEar Chicken is considering two potential projects, The Management Team under Jane has decided to present the cash flows from two recent proposals: the Lowasugar

PopEar Chicken is considering two potential projects, The Management Team under Jane has decided to present the cash flows from two recent proposals: the Lowasugar project and the Boostametabol project. All figures are in thousands of dollars:

Time of Cash Flow	Lowasugar	Boostametabol
Investment	-$17,500	-$15,500
Year 1	2,000	7,000
Year 2	3,700	5,500
Year 3	6,250	3,075
Year 4	7,000	3,200
Year 5	4,000	2,000

State and explain the decision rule behind the NPV method.
Compute the net present value (NPV) for each project by using a discount rate of 8.79% for projects of average risk.
Which of the two projects is more profitable?

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