1. Not considering inflation, in which year is Project 1's investment is recovered? why?

2. Not considering inflation, in which year is Project 2's investment is recovered? why?

Weight (1 -10 scale) 9 7 8 6 8 COMPOSITE SCORE= Interest rate/Cost of capital = Annual inflation rate = Investment Project-1 70 80 90 70 40 2650 10% 2.25% Net Profit ($2,200,000) $300,000 $650,000 $975,000 $1,230,000 $182,556 $47,237 13.08% Factors Profitability Technology advantage Revenue growth Long-term strategic fit Sustainability factor Discounted Cash Flow (Project) Beginning of 2022 $2,200,000 Beginning of 2023 Beginning of 2024 Beginning of 2025 Beginning of 2026 NPV (no infl) = NPV (infl) = IRR = ROI (no infl) = 8.298% If projects are selected based on NPV, would you choose Project 1 or Project 2? If projects are selected based on IRR, would you choose Project 1 or Project 2? Not considering inflation, in which year is Project 1's investment recovered? Not considering inflation, in which year is Project 2's investment recovered? PROJECT 1 Project-2 Project-3 Project-4 80 60 90 20 40 60 40 80 50 80 60 60 90 80 90 2380 2460 2710 Present = Beginning of year 2022 Investment Net Profit $3,280,000 ($3,280,000) $400,000 $1,200,000 $1,000,000 $2,085,000 NPV (no infl) =| $250,770 $49,049 NPV (infl) = IRR = 12.83% ROI (infl) 7.645% PROJECT 2 PROJECT 1 Hint: Don't calculate! Use the EXCEL NPV formula a few times. PROJECT 2 Project-5 40 80 80 30 100 2540