Send question to expert

Q$1.$ Inatech is contemplating two different projects and decides to performa financial analysis

to determine which is more financially lucrative Project$-$A and B have the cash flows as

shown and Inatech uses a required rate of return of $10\%$ and an inflation rate of $4\%.$

Compute the paybackin years and the net present value for both projects and offer advice$-$

as to the best course of action. $(4$marks$)$ T

i$.$ Using the payback period, the best project is

ii$.$ Using the NPV$,$ the best project is