Question: Question 5 Petrochem Industries is considering two projects to develop. The expected cash inflows are as follows: Project A Project B Year 1 170,000 160,000

Question 5 Petrochem Industries is considering two projects to develop. The

Question 5 Petrochem Industries is considering two projects to develop. The expected cash inflows are as follows: Project A Project B Year 1 170,000 160,000 Year 2 195,000 290,000 Year 3 235,000 300,000 Year 4 250.000 150,000 Year 5 190,000 160,000 Each Project requires an investment of $600.000. A rate of 10% has been selected for the Net Present Value (NPV) Analysis. Required: Calculate through the NPV and the Payback method and suggest which project should be recommended based on each method

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