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You are financial analyst for the Abacus Company. The director of capital budgeting has asked you to analyse two proposed capital investments Project and project

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You are financial analyst for the Abacus Company. The director of capital budgeting has asked you to analyse two proposed capital investments Project and project each project has a cost of $ 15.000 and the cost of capital for each is 12%. The project expected net cash flow are as follows: Expected Net Cash Flows Year Project A 15.000 5.000 Projects 15.000 3.000 It 3.000 3.500 1.500 B 2.000 4.000 4.500 Calculate each project Net Present Value (NPV) and Profitability Index (PI)

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