Determine which project the company should invest in

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Question 1: You have started your new job as a Project Manager. Your first task is to present to the Executives of the team, which of the 2 mutually exclusive projects the company should invest in. The cost of capital is 12%. Using the net present value determine which project the company should invest in and why.

Year                       Cash Flow (Project A)                    Cash Flow (Project B)

0                                 R210 000                                  - R21 000

1                                   R15 000                                     R11 000

2                                       R30 000                                     R9 000

3                                      R35 000                                    R15 000

4                                       R370 000                                       R10 000

Reference no: EM132609484

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