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Using the net present value analysis technique, evaluate the financial merits of the two proposed projects shown in the table below. Assume an annual discount
Using the net present value analysis technique, evaluate the financial merits of the two proposed projects shown in the table below. Assume an annual discount rate of 8% for each project. Project 1 30 000.00 Capital cost (E) Year 1 2 Net annual saving () +6 000.00 +6 000.00 +6 000.00 +6000.00 +6 000.00 +6 000.00 +6 000.00 +6 000.00 +6 000.00 +6 000.00 Project 2 30 000.00 Net annual saving (E) +6600,00 +6 600.00 +6 300.00 +6 300.00 +6 000.00 +6 000.00 +5 700.00 +5 700.00 +5 400.00 +5 400.00 9 10 Total net saving at end of year 10 +60 000.00 +60 000.00
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