A company has two projects to choose between. Project A cost $60,000, project B cost $150000. The following is the CF for each project Year Proj A Proj B 0 (60000) (150000) 1 20000 0 2 15000 30000 3 15000 30000 4 15000 30000 5 10000 30000 6 10000 30000 7 10000 30000 8 8000 150000 If the cost of capital is 10% which project should the company choose? AlNawras is a marketing company operating in Ramallah. The company policy is to give every new employee a new car every 5 years. Each car cost $40,000. The company has 2 choices, either Purchasing a new car or lease it. If the company decides to purchase the car, they have to pay $40000 for the new car, another $1000 for license-paid every year and $500 maintenance cost paid every year start from next year. The company expects to sell the car for $15000 on the 5th year. Choice B is to rent the car from AlSafa company. Alsafa demands only apayment of $10,000 yearly, starts from next year - for 5 years. If the borrowing cost is 10% Advice the company which choice is better b. Suppose AlNawras choose to rent the cars from Alsafa for $10,000 - 5 payments start next year. Two years later, Alsafa decided to sell the contract to the Arab Bank. The Bank demand a return of 15%. What is the value of the contract