Calculate the project cash flow generated for Project A and... Calculate the project cash flow generated for Project A and Project B using the NPV method. Which project would you select, and why? Which project would you select under the payback method?

 Calculate  the project cash flow generated for Project A and...

Calculate the project cash flow generated for Project A and Project B using the NPV method.

• Which project would you select, and why?
• Which project would you select under the payback method? The discount rate is 10% for both projects.
• Use Microsoft®Excel®to prepare your answer.

Sample Template for Project A and Project B: 

Initial Investment

Year 1

Year 2

Year 3

Project A

(10,000)

5,000

5,000

5,000

Project B

(55,000)

20,000

20,000

20,000