You are a project manager deciding between two project: Project Apple and Project Banana. Here are the project costs and expected cash flows of each project.

Project Apple Project Banana

Upfront cost $$(100,000)$ $$(75,000)$

Year $1$ cash flow $30,00030,000$

Year $2$ cash flow $75,00075,000$

Year $3$ cash flow $125,000100,000$

Year $4$ cash flow $150,000125,000$

After year $4$ each project is expected to be worthless. Suppose you view each project as equally risky. Your department uses a discount rate of $10\%$ to evaluate all projects. Use an NPV analysis to determine which project you should pursue. Complete the table below $($you may set this up on a spreadsheet and copy$/$paste here$).$

Project A Upfront CF $1$ CF $2$ CF $3$ CF $4$

Yearly CF

Discounted CF

NPV

Project B Upfront CF $1$ CF $2$ CF $3$ CF $4$

Yearly CF

Discounted CF

NPV