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Provide an evaluation of the two proposed projects whose cash flow forecasts are found below: Product A Product B Initial cost Expected life $900,000

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Provide an evaluation of the two proposed projects whose cash flow forecasts are found below: Product A Product B Initial cost Expected life $900,000 $1,000,000 5 years 5 years Scrap value expected $ - $75,000 Others expected cash inflows: Year $ $ 1 180,000 200,000 2 300,000 250,000 3 230,000 250,000 4 330,000 300,000 10 5 300,000 290,000 The company cost of capital for each project is 10 percent. The company relies on several criteria when evaluating new investment opportunities. The projects are independent.

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