Kokilaben Dhirubhai Ambani Hospital is expecting Project A and B to generate the following cash flows.

Determine the NPV at a cost of capital of 12%

Which project should be accepted?

Project A

	Years 0 1 2 3 4 5
Initial Investment ($2,800) Annual Cash Flows $300 $500 $800 $1,200 $2,000

Project B

	Years 0 1 2 3 4 5
Initial Investment ($5,000) Annual Cash Flows $1,300 $1,300 $1,300 $1,300 $1,300