Calculate the project cash flow generated for Project A and Project B using the NPV method....

Calculate the project cash flow generated for Project A and Project B using the NPV method.

Which project would you select, and why?
Which project would you select under the payback method? The discount rate is 10% for both projects.
Use Microsoft^® Excel^® to prepare your answer.
Note that a similar problem is in the textbook in Section 5.1.

Sample Template for Project A and Project B:

“Table showing investments and returns for Project A and Project B. Project A has $10,000 initial investment with $5,000 returns in each of the first 3 years. Project B has $55,000 initial investment with $20,000 in each of the first 3 years.”

I am looking for the formulas to use. I believe I am using them incorrectly. Thanks!

Expert Solution

ekkarill92 answered 5 months ago

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