You have been given the task of determining which of two mutually exclusive

projects the company should invest in based on net present value analysis. The cash flows are shown in the table. The discount rate is 10%.

t	Project A	Project B
0	(55,000)	(12,000)
1	10,000	4,000
2	14,000	6,000
3	11,000	5,000
4	11,000
5	15,000
6	10,000

1. Pick one of the two methods discussed in class, calculate the NPV for each project and choose the appropriate project for investment.

2- Explain how the method you did not choose can be used to determine the best project.