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A firm is considering the following two mutually exclusive investments in two different locations: Cash Flows ($) Projects C0 C1 C2 C3 Thailand 25,000 +

A firm is considering the following two mutually exclusive investments in two different locations: Cash Flows ($) Projects C0 C1 C2 C3 Thailand 25,000 + 5,000 + 5,000 + 25,640 Vietnam 28,000 + 12,672 + 12,672 + 12,672 The cost of capital is 12 per cent. Compute the NPV, Profitability Index & Payback period for each project. Which project should be undertaken? Why?

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