Tropical Candy Inc is considering two mutually exclusive projects, A and B Their cash flows are shown below Both Project A and Project B have an estimated cost of capital of 10 Cash flows will be realized at the end of each time period Year, t Project A Cash Flow at time t Project B Cash Flow at time t 0 1800 600 1 110 660 2 263 78 72 6 3 133 1 53 24 4 1024 87 146 41 5 3221 02 1610 51 Calculate the NPV for each project Which, if either, the project should be accepted Why Are there other capital budgeting criteria If yes, list at least one

Question: Tropical Candy Inc. is considering two mutually exclusive projects, A and B. Their cash flows are shown below. Both Project A and Project B have

Tropical Candy Inc. is considering two mutually exclusive projects, A and B. Their cash flows are shown below. Both Project A and Project B have an estimated cost of capital of 10%. Cash flows will be realized at the end of each time period.

Year, t	Project A Cash Flow at time t	Project B Cash Flow at time t
0	-1800	-600
1	110	660
2	263.78	72.6
3	133.1	53.24
4	1024.87	146.41
5	3221.02	1610.51

Calculate the NPV for each project. Which, if either, the project should be accepted? Why?
Are there other capital budgeting criteria? If yes, list at least one.

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