ART B: SHOW YOUR CALCULATIONS. INTELEK Corporation is in the process of expansion its business operation. Provided below

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answerhappygod
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ART B: SHOW YOUR CALCULATIONS. INTELEK Corporation is in the process of expansion its business operation. Provided below

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ART B: SHOW YOUR CALCULATIONS.
INTELEK Corporation is in the process of expansion its businessoperation. Provided below is the after-tax cash flows for bothprojects. Cost of capital will be 10% For each project,calculate:
a) Payback Period and Net Present Value
b) Suggest which project should the company invest , why?
APPENDIX – TABLE TIME VALUE OF MONEY @ 10%
Year Project A Project B
0 50,000 47,000
1 15,000 20,000
2 15,000 (10,000)
3 15,000 15,000
4 15,000 14,000
5 15,000 20,000
APPENDIX – TABLE TIME VALUE OF MONEY @ 10%
Year PVIF (10%) PVIFA (10%)
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.6830 3.1699
5 0.6209 3.7908
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