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Your firm is considering investing in the following two independent projects: Project A Project B Initial Investment End-of Year Cash Flow Initial Investment End-of Year

Your firm is considering investing in the following two independent projects: Project A Project B Initial Investment End-of Year Cash Flow Initial Investment End-of Year Cash Flow $60,000 $35,000 $80,000 $25,000 $25,000 $25,000 $30,000 $40,000 $40,000 You have the task of ranking the projects and then deciding whether the firm should invest in both, one, or none of the projects. The firm's required rate of return is 15%. You have decided to use the following capital budgeting techniques to support your decisions. Show your results in a similar format. Technique Project A Project B a) NPV b) IRR c) Payback period Approve

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