Please include the formulas used to find the answer.

A B D E F G H I J KLM N O A Capital Budget Problem 1 2 3 Your business has an opportunity to invest in Project A or Project B. The initial investment is 1000 and they are of equal risk. Your cost of capital is: 12.00% 4 Fit to Screen 5 6 7 Part 1 Calculate the NPV or Discounted Cash Flow for each option. 8 9 Proiect A: 10 11 YEAR PV 12 0 INFLOW 0 1,000 OUTFLOW 1,000 300 300 300 NET -1,000 700 13 1 2 800 500 14 3 600 15 300 16 Present Value