Question: Two projects below with a 14% WACC two projects for this year's capital budget. After-tax cash flows, including depreciation Project A: CF 0 = -6000

Two projects below with a 14% WACC

two projects for this year's capital budget.

After-tax cash flows, including depreciation

Project A:

CF 0 = -6000

CF1 = 2000

CF2 = 2000

CF3 = 2000

CF 4 = 2000

CF 5 = 2000

Project B:

CF 0 = -18000

CF 1 = 5600

CF 2 = 5600

CF 3 = 5600

CF 4 = 5600

CF 5 = 5600

Is NPV the better calculation? Please explain

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