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Inatech is contemplating two different projects and decides to perform a financial analysis to determine...

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Accounting

Inatech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown and Inatech uses a required rate of return of 10% and an inflation rate of 4%. Compute the payback in years and the net present value for both projects and offer advice as to the best course of action.
Year A B
0-$250,000-$400,000
1 $75,000 $125,000
2 $155,000 $230,000
3 $200,000 $288,000
4 $175,000 $265,000
5 $160,000 $225,000

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