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

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 .$ 300,000 ....45,000 ..120,000 ...60,000 4 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 ?
 Project A Year Initial investment.... 1.......... 2......... 3..... 5........ Project B

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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