PLEASE ANSWER IN 30 MINUTES!!

Calculate NPV of both projects then use NPV infinity formula for both projects to determine the best project,

Q. No. 3: (10 Marks) Maloik Co. is considering the replacement of one of its old Plant. Two alternative replacement are under consideration. The relevant cash flows associated with each (Project A and Project B) are shown in the following table. The firm's cost of capital is 5%. Year 0 1 End of Year Cash Flows (000s) Project A Project B (200,000) (200,000) 60,000 116,000 60,000 118.000 60,000 60,000 2 3 4 Requirement: Which project should be selected, and why? (Calculations are required as well)