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ABC, Inc., has two investment proposals, which have the following characteristics: Project A Project B Period Cost Profit after taxes Net cash flow Cost Profit
ABC, Inc., has two investment proposals, which have the following characteristics:
| Project A | Project B | ||||
Period | Cost | Profit after taxes | Net cash flow | Cost | Profit after taxes | Net cash flow |
0 | $9,000 | - | - | $12,000 | - | - |
1 |
| 1,000 | 3,000 |
| 1,000 | 5,000 |
2 |
| 1,000 | 2,000 |
| 1,000 | 5,000 |
3 |
| 1,000 | 6,000 |
| 4,000 | 8,000 |
4 |
| 2,000 | 2,000 |
| 2,000 | 2,000 |
For each project, compute its payback period, net present value, protability index using a discount rate in percentage terms is equal to 4
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