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

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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