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Kong Wafers, an Asian technology company, is evaluating two mutually exclusive projects, P and Q. The relevant cash flows for each project are given in

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Kong Wafers, an Asian technology company, is evaluating two mutually exclusive projects, P and Q. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent. Project P Project Q Initial investment $350,000 $425,000 Year Cash Inflows 1 140,000 $175,000 165,000 150,000 190,000 125,000 100,000 75,000 50,000 2 3 4 5 6 | Q + Initial investment $350,000 $425,000 Year Cash Inflows 1 140,000 $175,000 2 165,000 150,000 3 190,000 125,000 100,000 75,000 50,000 4 5 6 The NPVS of Projects P and Q are $95,066 and $56,386, respectively O-$56,386 and -$95,066, respectively O $45,000 and $650,000, respectively CELOOS . (See Table above)

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