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[5] Net Present Value and Payback Period (20 points) You have the following information on two investment projects: Estimated cash-flows Project A Project B Today

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[5] Net Present Value and Payback Period (20 points) You have the following information on two investment projects: Estimated cash-flows Project A Project B Today -10,000 -20,000 Year 1 3,500 7,700 Year 24,500 4,500 Year 3 7,500 5,500 Year 4 12,500 6,200 Calculate Payback Period and Net Present Value for both projects. Additional questions: (a) which projects would you accept/reject with a cutof period of two years? ( which projects would you accept/ reject with the Net Present Value rule? Briefly explain your answe

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