5. Considering project B which one is the best and why.? Project B's results are given on the table below DPBP 3 years NPV + 2200 PI 1.20 IRR 15% Payback Period 2.8 years 5. Considering project B which one is the best and why.? Project A CAPEX $26,700 Rent expense $2700 Supplies expense $2750 Prepaid expense $1500 Utilities expense $1800 Insurance expense $500 Unearned Revenue $3200 Gas Expense $520 Project period 5 years Sales $10,500 Discount rate table GDP 3% Risk free 6% Risk premium 2.5% Interest Rate 8% 3/4 REQUIRED 1. Calculate the initial investment, After tax cash flow and terminal value of the project. 2. Calculate the discounted payback period of the project 3. Estimate the NPV and Pl of the project 4. What is the IRR of the project
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