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2. Assume that ABC Inc is considering two projects namely Project X and Project Y and wants to calculate the NPV for each project. Both
2. Assume that ABC Inc is considering two projects namely Project X and Project Y and wants to calculate the NPV for each project. Both project X and project Y is four-year project and cash flows of both the projects for four years are given below: Year 1. 2. Project A Cash Flows $5000 $4000 Project B Cash Flows $1000 $3000 3. $3000 4. $1000 $4000 $6750 The firm's cost of capital is 10% for each project and the initial investment amount is $ 10,000. Calculate the NPV of each project and determine in which project the firm should invest.
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