Investment Details:

• Project A:
  • Initial Investment: $2,500,000
  • Annual Cash Inflows: $700,000
  • Useful Life: 5 years

• Project B:
  • Initial Investment: $3,000,000
  • Annual Cash Inflows: $800,000
  • Useful Life: 7 years

Requirements:

• Conduct a capital budgeting analysis for Project A and Project B.
• Calculate the payback period and net present value (NPV) for each project.
• Present the analysis in a detailed table format.
• Discuss which project is more viable based on the analysis.