Paragraph Styles Editing 4.3 Swiss Chocolate Company is considering investing in some wrapping machinery. The following information has been prepared to support the projects: 120 marks) The nitial cost of each project is BD 3,000. The desired rate of interest is 3%. Inflows-Years Project A (BD) Project B (BD) Inflows -Year 1 1,500 500 Inflows-Year 2 1,000 1,000 Page 14 of 16 Inflows -Year 3 000 300 Inflows -Year 4 800 700 Inflows - Year $ 500 300 4.3.1 Calculate the present value factor (discounted rate) for 5 years @3%. (2.5 marks) Ta 4.3.1 Calculate the present value factor (discounted rate) for 5 years @3%. (2.5 marks) Year PV factor @ 3% 1 3 4 4.3.2 Calculate the NPV of each project. (14 marks) Present value Project A (BD) Project B (BD) Inflows Year 1 Inflows-Year 2 Inflows-Year 3 Inflows-Year 4 Inflows -Year 5 Total present value NP 4.3.3 Suggest to the business the suitable project based on NPV technique. (3.5 marks) Your suggestion and reason: RE THE EERSTE EB Page 15 of 16