calculate NPV OF. 1 AND 2

Keltron manufacturing is considering two mutually exclusive projects. The 2 points company uses a certain equivalent approach. The estimated cash flows and certainty equivalents for each project are as follows. Calculate NPV of Project 1* Project 1 Project 2 Cash Flows Years Cash Flows Certainty Equivalents Certainty Equivalents 0 1 2 Rs. 15,000 7,500 7,500 5,000 5,000 1.00 .95 .85 170 .65 Rs. 20,000 12,500 10,000 7,500 5,000 1.00 0.90 0.80 0.70 0.60 Keltron manufacturing is considering two mutually exclusive projects. The 2 points company uses a certain equivalent approach. The estimated cash flows and certainty equivalents for each project are as follows. Calculate NPV of Project 1* Project 1 Project 2 Cash Flows Years Cash Flows Certainty Equivalents Certainty Equivalents 0 1 2 Rs. 15,000 7,500 7,500 5,000 5,000 1.00 .95 .85 170 .65 Rs. 20,000 12,500 10,000 7,500 5,000 1.00 0.90 0.80 0.70 0.60