scenario of capital budgeting asset decision. your company wants to determine which investment project it should invest in. since you are the analyst, you have been asked to analyze these two projects and report back to the ceo which of these two projects your company should undertake. project a has an initial investment cost of $40,000. this project is expected to produce $9,000 in net cash flows each year for 7 years. project b has an initial investment cost of $35,000 with an expected net cash flow of $7,500 per year for 5 years. both investments have a 12% cost of capital. a) what is each project's npv? b) what is each project's irr? c) what is the payback period for each project? d) what is the pi for each project? e) which investment project do you recommend for your company?.