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3. Bank Inc. is considering the following projects with cash flows: Project A and B, whose cash flows are shown below. These projects are independent
3. Bank Inc. is considering the following projects with cash flows: Project A and B, whose cash flows are shown below. These projects are independent and equally risky. The CFO wants you as an analyst to determine the project(s) recommendation and why? Cash flows for project A are 2050,2575,2650,1140,1000, and 1100. Project B cash flows are 3750,1750,1800,1000,1100,1000. a. NPV and IRR of the chosen project(s). b. What is the Payback period? c. What is the Profitability index? d. Discuss your results of these methods and recommendation of the project(s) to the CFO and why? 3. Bank Inc. is considering the following projects with cash flows: Project A and B, whose cash flows are shown below. These projects are independent and equally risky. The CFO wants you as an analyst to determine the project(s) recommendation and why? Cash flows for project A are 2050,2575,2650,1140,1000, and 1100. Project B cash flows are 3750,1750,1800,1000,1100,1000. a. NPV and IRR of the chosen project(s). b. What is the Payback period? c. What is the Profitability index? d. Discuss your results of these methods and recommendation of the project(s) to the CFO and why
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