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1) XYZ company is planning to take the nearby shop A on lease for 5 years. Also, available is the nearby shop B. Following are

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1) XYZ company is planning to take the nearby shop A on lease for 5 years. Also, available is the nearby shop B. Following are the projections for a five-year planning horizon: Cost PV of expected cash flow@k= 15% Shop A Rs. 2,000,000 2,500,000 Shop B Rs. 2,900,000 3,600,000 (a) Calculate the NPV for each facility. Which is more desirable according to the NPV criterion? (b) Calculate the PI for each facility. Which is more desirable according to the PI criterion? (c) Under what conditions would either or both of the services be undertaken

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