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Investment Investmen X tY CA firm is considering two mutually exclusive projects. The cashflows for this investment are shown in the table to the right.

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Investment Investmen X tY CA firm is considering two mutually exclusive projects. The cashflows for this investment are shown in the table to the right. Initial Investment $85,000 $130,000 Cost of Capital 8% 12% a) Which investment should be funded based on the NPV analysis? Year (yr. start convention) Cash flows (yr.end convention) a)What is the value of this investment? 1 2 3 4 5 $25,000 $35,000 $45,000 $50,000 $55,000 $40,000 $35,000 $30,000 $10,000 $5,000

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