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Tnatech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have

Tnatech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have cash flows as shown. Inatech uses a required rate of return of 10% and an inflation rate of 4%. Compute the discounted payback in years and the net present value for both projects, and then offer advice as to the best course of action. 80 pts

Year

A

B

0

-$100,000

-$400,000

1

$20,000

$75,000

2

$50,000

$100,000

3

$50,000

$150,000

4

$25,000

$150,000

5

$500,000

$750,000

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