From the following information calculate the net present value of the two projects and suggest which of the two projects should be accepted assuming a discount rate of 10% Project A Project B Initial...

From the following information calculate the net
present value of the two projects and suggest
which of the two projects should be accepted
assuming a discount rate of 10%
 Project A Project B
Initial investment Rs. 20,000 Rs. 30,000
Estimated life 5 years 5 years
Scrap value Rs. 1,000 Rs. 2,000
 The profit before depreciation and after taxes are
as follows:
Year Project A
Rs.
Project B
Rs.
1 5,000 20,000
2 10,000 10,000
3 10,000 5,000
4 3,000 3,000
5 2,000 3,000