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QUESTION
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
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:
