Y ltd intends to invest in 2 projects whose cash flows were as follows:

YearsProject A Cash flowsProject B Cash flows

Ksh.000 Ksh.000

0 (80,000)(40,000)

1 16,000 14,000

2 28,000 26,000

3 30,000 28,000

4 32,000-

5 34,000-

6 35,000-

If the discounting rate is 12%

Required:by way of 2 methods, advice on viability of the project using NPV technique and assume that the projects are mutually exclusive