[Osara]

A company is considering the two projects, Project A and Project B. Project. A has an initial investment of $50,000 and is expected to generate a net cash inflow of $8,000 per year for 12 years. Project B has an initial investment of $70,000 and is expected to generate a net cash inflow of $15,000 per year for 4 years. The company’s cost of capital is 8%. Which project should the company choose based on NPV?
A) Project A
B) Project B
C) Both projects are equally viable.
D) Neither project is viable

They have given the answer as D. But I got the answer as A. Can you explain this question?

[Author]

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