Question: The table below presents the cash-flows associated to projects A and B: Project Year 0 1 2 3 4 A Investment 4,500 Cash-flow 1,000 2,400

The table below presents the cash-flows associated to projects A and B:

Project

Year

0

1

2

3

4

A

Investment

4,500

Cash-flow

1,000

2,400

2,200

1,900

B

Investment

3,000

Cash-flow

1,100

2,300

2,700

3,500

Compute the NPV and the discounted payback period at an opportunity cost of capital of 12%. (1 pct)

Project

NPV

DPAYBCK

A

B

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