Question: Project A has initial cash out-flow at t = 0 of -$125,000,000/-, then the constant cash flows for the 5 years is $35,550,000. For the
Project A has initial cash out-flow at t = 0 of -$125,000,000/-, then the constant cash flows for the 5 years is $35,550,000. For the project B the initial cash out-flow at t = 0 is of -$137,000,000. Then the constant cash flows for the 10 years is $25,000,000. Find the NPV of both of the projects on the basis of equal life and equal annual annuity? Which one is to be accepted. The cost of both projects is 11%.
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