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Q.4 Capital budgeting techniques. (20 marks). Consider the below 2 investment projects A & B, whose initial investment and the relevant end of year cash

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Q.4 Capital budgeting techniques. (20 marks). Consider the below 2 investment projects A & B, whose initial investment and the relevant end of year cash inflows are given. Advice the investor which project to accept or reject, based on both (NPV) and payback period techniques, if i= 10% Page 3 of 4 EXAMINATION QUESTION BOOKLET DIN: RUW-SNT-T-035 RN: 04 ED: 18/02/2016 Project A Project B Initial Investment $22000 $ 25000 Year cash inflow cash inflow 1 2 7000 7000 7000 7000 19000 6000 5000 5000 3 4

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