Question: Two mutually exclusive project are under consideration. The first project, Straingy Production System will serve a contract that has a life of 5 years. The

Two mutually exclusive project are under consideration. The first project, Straingy Production System will serve a contract that has a life of 5 years. The NPV of this project is Tk 35,800. The second project, Normandy Production System, has a life of 4 years and has an NPV of Tk 33,400. The company uses a discount rate of 18 percent. If necessary, both projects may be extended to infinite life. Which project should be selected and on which basis?

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