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Y ltd intends to invest in 2 projects whose cash flows were as follows: YearsProject A Cash flowsProject B Cash flows Ksh.000Ksh.000 0 (80,000)(40,000) 116,000

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

YearsProject A Cash flowsProject B Cash flows

Ksh.000Ksh.000

0 (80,000)(40,000)

116,000 14,000

228,000 26,000

330,000 28,000

432,000-

534,000-

635,000-

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

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