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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: a)

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: 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 c) What is your recommendation? Why?

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