Styles Two project ng CONSUreu. Assume cost of capital (required rate of return) of 8% for the duration Period Project A Project B Initial Outlay Cash Outflows 1 2 3 4 (50,000) 14,000 20,000 26,000 5,000 (30,000) 4,000 8,000 12,000 10,000 8% Present value factors: Year 1 = 0.9259 Year 20.8573 Year 3 = 0.7938 Year 4 = 0.735 2.2 Determine which of the above projects has the highest net present value, at an 8% rate of return. (12) Year 1 Year o (R xx xx) Year 2 Year 3 Year 4 RX XXX R XXXX R XXXX RXX XXX PROJECT A Initial Outlay Cash Outflows Discount Factor (8%) CASH FLOW NPV 0.9259 0:8573 0.7938 0.735 RXX XXX ROX XXX (RXX xxx) RXX XXX Rxx xxx RX XXX 5 MARK per calculation Year 1 Year 2 Year 3 Year 4 Year o (R Xxxxx) RXX XXX RXX XXX RXXXXX R XXX PROJECTE Initial Outlay Cash Outflows Discount Factor (8%) CASH FLOW NPV 0.9259 0.8573 0.7938 0.735 RXX XXX RXX XXX RXXXXX ( RX XXX) RXXXXX RXX XXX 5 MARK per calculation w Desito