(solution) Your company is considering 2 different projects for long term

(solution) Your company is considering 2 different projects for long term

  • Your company is considering 2 different projects for long term investment.  They have the investment/revenue inflow schedules outlined below.  Calculate the indicated assessment tools and make a final recommendation on which project, if any, should be invested in, (assume the company only has enough funds to invest in 1 project & k = 8%)

                                          Project A                                    Project B

Initial Investment              $155,000                                      $310,000

Revenue Inflows

Year 1                                $70,000                                           0

Year 2                                  70,000                                           0

Year 3                                  70,000                                           0

Year 4                                  70,000                                       $500,000

Payback  =                        _________                                      3.62 years

NPV =                               _________                                   _________