Calculate the net present value

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Calculate the Net Present Value given two proposed projects of AIM Manufacturing Corp.

Project #

1: Initial Investment: $100,000

Cash Inflows:

Year 1: $45,000

Year 2: $48,000

Year 3: $55,000

Year 4: $75,000

Year 5: $150,000

Project # 2:

Initial Investment: $100,000

Cash Inflows:

Year 1: $65,000

Year 2: $45,000

Year 3: $25,000

Year 4: $10,000

Year 5: $1,000

What are the Payback Period for each project using the NPV Method? Which project would you select in you were looking for higher cash inflows in your capital budget? Why?

Reference no: EM132342687

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