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NO.5 (10 Marks) Creed has the opportunity to choose between the following two mutually exclusive projects: Expected Net Cash Flows Year Project Year 0 1

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NO.5 (10 Marks) Creed has the opportunity to choose between the following two mutually exclusive projects: Expected Net Cash Flows Year Project Year 0 1 Expected Net Cash Flows Project A Project B -$100,000 -$100,000 60,000 33.500 60,000 33,500 33,500 hp 33,500 3 Both projects have a 10o cost of capital. c. Calculate the Payback Period for each project d. Which project should be selected according to the payback period method? Calculate the NPV of each project f Which project should be selected according to the NPV method? e

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