APP Inc. is considering two alternative investments. Investment A requires an up-front expenditure of $15,000 today, has an expected life of 4 years, and generates cash flows of $2,500 every three months (all cash flows are realized at the end of the three months). Alternatively, the company can undertake Investment B at a cost of $18,000 today. Investment B will produce cash flows of $2,000 every three months for 4 years (all cash flows are realized at the end of the three months). Assume that the cost of capital is 10% p.a. compounded annually. If the company chooses the project that adds the most value to the firm using the NPV criterion, which investment project should the company choose? Answer the following questions, and choose the closest answer from the possible choices following each question: A because NPV of A is greater than NPV of B PMT Which project (A or B) should APP Inc. choose based on NPV criterion? For Project A, which TVM variable on the financial calculator does $2,500 represent? For Project B, how many cash flows will the project generate over its life? The $18,000 investment today for Project B should be adjusted to a FV in this analysis. (Answer Yes or No) 16 What is the NPV for Project A? Choose Yes When two projects both have negative NPV values, we should choose the one with a greater NPV value. (Answer Yes or No) Please answer all parts of the question ABX Pawg