Compute net present value of both projects

Reference no: EM13217609

Big Shot Market is considering two investment projects:
Project A Project B
Initial Cost 250,000 200,000
Number of Periods 5 5
Yearly Net Cash Flow 75,000 60,000
Cost of Capital (WACC) 5% 5%

a) Compute net present value of both projects
b) Should Big Shot invest?
c) Which project should they choose?

Reference no: EM13217609

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