1. The Tazicon Corporation (TTC) is considering the undertaking of two new projects (A & B), whose net cash flows have been projected as indicated below:

Net Cash Flows ($ 000 )
Year	Project A	Project B
0	(94,500.00)	(129,500.00)
1	51,450.00	38,900.00
2	38,900.00	47,740.00
3	9,850.00	38,400.00
4	22,860.00	51,700.00

Required:

1. Assuming the Required Rate of Return on both projects is 14%, determine the following: (use excel and show formula)

• The Payback period for each project, and
• The NPV of each project.

ii. From your analysis in above, advise the Board of Tazicon Corporation as to which project(s) should be selected under each method if they are:

• Independent
• Mutually Exclusive