Plz solve it..

+ should we add long-term debt when calculating cash flow? Cuz it's not a part of the income statement

Your father is face two investment projects ABC and XYZ and ask your help. The features of these two projects are reported in the below table Project ABC Project XYZ Initial costs 100,000 150,000 Sales 250,000 300,000 Long term debt 50,000 100,000 COGS 200,000 220,000 Operating expenses 10,000 20,000 Tax rate 40% Interest rate 10% Period (# years) 5 Depreciation Straight line depreciation 1) Calculate the cash flows of the projects ABC and XYZ. (5 marks) The cash flows is constant during the coming five years, calculate the NPV for each project if the discount rate is 10%. (2.5 marks) 2)