A company is looking at launching a new business line and is considering the following options: country A or country B,

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A company is looking at launching a new business line and is
considering the following options: country A or country B, with the
following initial investments and expected cash flows:












Product
A
Product
B


II
(initial investment)

650,000

810,000



year 1

310,000

205,000



year 2

200,000

175,000



year 3

50,000

155,000



year 4

150,000

365,000











Where should the company expand, A or B, according to the payback
period and IRR of each project?



Considering that the discount factor is 4%, calculate the net
present value and benefit cost ratio for each project and
advise.