Q3

Use the net present value technique to evaluate the following two projects and advice management on which one to choose. Use a discount rate of 15.5%.

YEAR	PROJECT A	PROJECT B
0	(120,000)	(120,000)
1	40,500	51,000
2	32,500	45,000
3	64,500	18,600
4	38,500	17,000

Your PVIF should be approximated to 4 decimal places.