Which project new wave select if could only select one

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New Wave Health, Inc., is evaluating two investment projects, each of which requires an up-front expenditure of 2.0 million. The company's cost of capital is 15% and the projects are expected to produce the following net cash inflows:

Year           Project A          Project B
                 $400,000         $800,000
                425,000          1,000,000
               500,000             750,000
                   2,000,000          700,000

Problem 1: Which project should New Wave select if they could only select one?

Reference no: EM132717160

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