A Company has been offered the possibility of entering two projects: a) A five years project that consists on an initial investment of 100,000 EUR and a set of 5 yearly revenues of 25,000 EUR from year 1 onwards b) A ten years project that consists on an initial investment of 100,000 EUR and a set of 10 yearly revenues of 20,000 EUR from year 1 onwards. From the point of view of the Payback Period, what is the best project? 0 1 2 3 4 5 6 7 8 9 10 Payback period of Proj. 1: Payback period of Proj.2: A Company has been offered a five years contract to provide components to a car manufacturer. If they accept that project, there will be an initial investment of 200,000 EUR, an extra expense of 50,000 EUR in year 3, and yearly revenues of 60,000 EUR from year 1 onwards. The company wishes to gain a 10% at least (use this as a discount rate). What is the NPV of this operation? (Write the answer with no decimals) 0 3 Those ?????? in n=0, what is its value in n=0? Those ??????? in n=1, what is its value in n=0? Those ??????? in n=2, what is its value in n=0? Those ?????? in n=3, what is its value in n=0? Those ??????? in n=4, what is its value in n=0? Those ????????? in n=5, what is its value in n=0? What is the value of all the above cashflows in n=0 (NPV)? So, it means that the profit (margin, gain...) of this project is