Npv calculations of project a & b; with explanations
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. Calculate the project cash flow generated for Project A and Project B using the NPV method (Show your calculations): . Project A: Invest $10k today and receive $5k at the end of this year and for another 2 years (in 12 mos, in 24 mos, in 36 mos), for total cash inflows of $15k. Project B: Invest $55k today and receive $20k at the end of this year and for another 2 years (in 12 mos, in 24 mos, in 36 mos), for total cash inflows of $60k. Sample Template for Project A and Project B:
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