7 Listen Given information on the following two projects, which one would you recommend and why? (10 marks- for each Project (A&B)(8) 2 points for correct NPV 1 point for correct ROI 1 point for correct payback year 1 point for recommending correct project 1 point for correct reason) Project A will run for 4 years, including 1 development year. It has expected costs as follows: Year 1 Year 2 Year 3 Year 4 $5,000 $25,000 $1,000 $100 Project A has expected benefits as follows: Year 1 Year 2 Year 3 Year 4 $0 $1,000 $20,000 $30,000 Project B will run for 4 years. It has expected costs as follows: Year: Year 2 Year 3 $50,000 $5,000 $5,000 Year 4 $2,000 Project B has expected benefits as follows: Year 1 Year 2 $10,000 $50,000 Year 3 $70,000 Calculate NPV, ROI, and year of Payback to determine which project is financially stronger. Year 4 $80,000 Use an 8% discount rate: Year 1 Year 2 1 0.93 Year 3 0.86 Year 4 0.79