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1) You are the head of the project selection team at FEDEX. Your team is considering two different projects. Based on past history, FEDEX expects
1) You are the head of the project selection team at FEDEX. Your team is considering two different projects. Based on past history, FEDEX expects at least a rate of return of 20 percent. Your financial advisors predict inflation to remain at 1 percent into the foreseeable future. Based on the following information for each project, using the NPV method, which project is better? (30 Points) Project: Dust Devils Year Inflows Outflows Net flow NPV Discount Factor 0 500,000 1 2 3 180,000 200,000 320,000 Project: Ospry Year Inflows Outflows Net flow NPV Discount Factor 250,000 0 1 2 3 4 60,000 100,000 120,000 100,000
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