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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

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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 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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