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PART II: (Total Marks - 30) BARBELLE LADIES CLUB Company has the chance to open a third branch. There are two possible locations. The company

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PART II: (Total Marks - 30) BARBELLE LADIES CLUB Company has the chance to open a third branch. There are two possible locations. The company is evaluating the following two projects. The cost of Project A is AED 550,000, for Project Bis AED 350,000. The cost of capital is 10%. Year 1 Year 2 Year 3 Year 4 Year 5 Project A 120,000 130,000 165,000 145,000 150,000 150,000 Project B 100,000 110,000 120,000 140,000 1) Calculate the net present value (NPV) of the two projects, A and B. 2) Indicate which project the company should accept and why

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