XZ Company is medium sized metal fabricator that is currently contemplating two projects: Project A require an initial investment of $ 50,000, Project B require an initial investment of $ 55,000. Assume the NZ Company has a 10% cost of capital and the relevant cash flows for the two projects are presented in the table below:

Project		Project A	Project B
Initial Investment		50,000	55,000
Year		Operating Cash Flow
1		18000	33000
2		18000	16000
3		18000	14000
4		18000	14000
5		18000	14000

Require:

a) Calculate the NPV for Project A and B?

b) Based on your NPV findings in section (a) which project will you recommend for NZ Company?

c) Based on your answer in section (b) justify your recommendation?