Question: Project A Year Initial investment.... 1.......... 2......... 3..... 5........ Project B Year Initial investment... 1......... 2.... 5..... Cashflow .$ 300,000 .50,000 .100,000 .180,000 ....60,000 Cashflow
With the discount rate 10% Compute both projects the following investment Criteria : a. NPV (Net Present Value) b. IRR (Internal Rate of Return) c. PB (Payback period) d. DPB (Discount Payback period) e. PI (Profitability Index) f. With result of NPV, which project should be selected ? explain
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