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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
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.
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