Question: There are two projects, A and B. Each project requires an investment of $20,000. The Companys WACC is 10%. Net profit before depreciation and after

There are two projects, A and B. Each project requires an investment of $20,000. The Companys WACC is 10%. Net profit before depreciation and after tax Years Project A Project B 1 4,000 5000 2 6,000 7000 3 8,000 9000 4 10000 11000 5 12000 12000 You are required to rank these projects according to the pay back method and NPV from the above information using discounted cash flow. Advice the companys management on the choice of the project.

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