Question: UVW Solutions Project Comparison UVW Solutions has two projects with the following cash flows: Year 0 : Project G: -400,000, Project H: -400,000 Year 1

UVW Solutions Project Comparison

  • UVW Solutions has two projects with the following cash flows:
  • Year 0: Project G: -400,000, Project H: -400,000
  • Year 1: Project G: 120,000, Project H: 80,000
  • Year 2: Project G: 100,000, Project H: 100,000
  • Year 3: Project G: 80,000, Project H: 120,000
  • Year 4: Project G: 60,000, Project H: 150,000
  • Cost of capital: 10%
  • Requirements:
    1. Calculate the NPV for both projects.
    2. Calculate the IRR for both projects.
    3. Determine the payback period for each project.
    4. Evaluate which project is more financially viable considering NPV, IRR, and payback period.

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