Calculate the net present value of Pepsi and Coca-Cola projects and recommend which of the two projects should be accepted at a 10% p.a discount rate. The initial capital investment is $30000 and $40000 respectively with a lifespan of 5 years. In addition, the scrap values are worth $2000 and $3000 respectively. The cash flows of the two projects are as follows ;YearPepsi projectCoca-Cola project1$7000$220002$12000$120003$12000$70004$5000$50005$4000$4000
Calculate the net present value of Pepsi and Coca-Cola projects
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