Campy company is evaluating two mutually exclusive proposals with the following information: ($1,000)

The incremental outlay is $8,000 for each project

Cash Out flow Project A

Pessimistic 500 Most Likely 1,000 Optimistic 1,500

Cash Flow Project B

Pessimistic 900 Most Likely 1,000 Optimistic 1,100

Determine:

Show calculations. Do not use excel a) Range of cash flows for each of the projects b) Assume a cost of capital of 10% and both project have a 20-year life. Determine their NPV