Project A is as follows: $100,000 upfront cost and annual cash flows of $25,000 a year...

Project A is as follows: $100,000 upfront cost and annual cash flows of $25,000 a year for seven years.

Project B is as follows: $100,000 upfront cost and cash flow of $20,000 per year for 8 years.

Project A Payback Period is 4 years and Project B is 5 years.

using that data calculate NPV for projects A and B using a 10% discount rate.

which project do you pick if they are mutually exclusive? Which do you pick if they are independent and the company has enough funds to do all projects?

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jeff jeffy answered 1 year ago

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