00:01
Now in the given question, this tension in coussia has two project options, that is a and b.
00:07
And this project has a cash flow for four years.
00:12
So first of all, we will be writing down the cash inflow for the four years.
00:16
For project a, first year's cash in flow is of $26 ,500.
00:22
The second year is $34 ,400.
00:26
Similarly, for fourth year, sorry, the third year, it's $26 ,500.
00:32
And for fourth year it's 14 ,500.
00:37
Now for project b the cash inflow for first year is of 28 ,500.
00:44
For second year it's 33 ,500, for third year it's 25 ,500 and finally in the fourth year it is going to have 231 ,000 cash inflow.
00:59
Now the second thing that we are going to calculate is cumulative cash inflow for project a for the first year it is going to be 26 500 for second year with this 26 500 we will be adding second year scans inflow that is 34400 and that comes to 60 ,900 with this the addition of third year cash flow will be 28 ,500 and it comes to 89 ,400 and finally 1003 ,900 similarly similarly, the cash inflow for project b will be 28, 500 addition of 33 ,500, it creates 62 ,000...