Find the npv of singing fish fine foods projects

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Problem 1: Singing Fish Fine Foods has $2,000,000 for capital investments this year and is considering two potential projects for the funds. Project 1 is updating the deli section of the store for additional food service. The estimated annual after-tax cash flow of this project is $700,000 per year for the next five years. Project 2 is updating the store's wine section. The estimated annual after-tax cash flow for this project is $630,000 for the next six years. If the appropriate discount rate for the deli expansion is 9.5% and the appropriate discount rate for the wine section is 9.0%, Find the NPV of both projects and decide which project to choose?

Problem 2: The company's CFO has predicted that due to construction of new mall near their projects, the customer demand for their products is going to be badly affected.so they are not considering the cashflows after three years. So which alternative would you now recommend?

Reference no: EM132841301

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