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Orange Inc. is considering the following two projects A in Germany and B in India, respectively: Year Cash Flow (A) Cash Flow (B) 0 -1,000,000

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Orange Inc. is considering the following two projects A in Germany and B in India, respectively: Year Cash Flow (A) Cash Flow (B) 0 -1,000,000 -500,000 400,000 200,000 1 2 500,000 350,000 3 600,000 400,000 The discount rate for Project A is 10 %, and the discount rate for Project B is 15%. c) i. What is the Net Present Value for each project? Show your calculation. (3 marks) ii. If project A and project B are mutually exclusive, which project(s) should be accepted? (1 marks)

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