QUESTIONS 2002 MIDTERM 29% Net Present Value (NPV). Use the estimated Net Cash Flows below for four (4) years to answer the questions that follower Smarts Project A Project Time 0 1 2 3 4 (10,000) 3.500 3.500 3,500 3,500 (10,000) 500 500 5,600 9,000 Assume annual interest rate of 9% for all four (4) years. a: Just looking at the trend of the net cash flows (No calculation), which project is a better investment? 1 marts 4 marks b: Calculate the Net Present Value (NPV) of projects A and B. Based on the NPV calculated above, which project would you invest in? And Why? Page 7 of 8