Question: Save Anse 28 points Bash salon has the chance to open a third branch. There are two possible locations. The company is evaluating the following
Save Anse 28 points Bash salon has the chance to open a third branch. There are two possible locations. The company is evaluating the following two projects. The cost of Project A is AED 800,000 and Project B is AED 900,000. The required rate of return is 12% Year 1 Year 2 Year 3 Year 4 Year 5 Project A - 800,000 160,000 170,000 180.000 1 90,000 200,000 Project B - 900,000 210,000 220,000 230,000 240.000 250.000 A) Calculate the net present value (NPV) of the two projects, A and B. (24 marks) B) Indicate which project the company should accept and why (4 marks) TTT Art. 31206) TEE 5
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