The table below shows cost and benefit flows of two publication infrastructure projects. 1....

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Finance

The table below shows cost and benefit flows of two publication infrastructure projects.

1. Use a 10 percent discount rate to commute the NPV for both projects.

2. Write a paragraph to discuss the economic feasibility for the two projects.

Cost Benefit
Year Personnel Operating Capital
Project A
0 (the current year) 300,000 0 200,000 0
1 150,000 2,000 100,000 0
2 100,000 15,000 25,000 30,000
3 0 21,000 0 150,000
4 0 21,000 0 200,000
5 0 21,000 0 200,000
Project B
0 (the current year) 500,000 0 125,000 0
1 100,000 12,500 25,000 187,500
2 0 25,000 0 187,500
3 0 25,000 0 187,500
4 0 25,000 0 187,500
5 0 25,000 0 187,500

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