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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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