Investment Question

[TraceyNL]

I really need help!!!

I have an investment question that I'm desperately trying to answer and I'm wondering if someone can please help me.

Essentially, I have been given two investment situations, Project 1 and Project 2, and I've been asked to compare the two projects.

Here are the details with relation to each project:


Project 1:
Equity Contributions totaling (290,000) and they are disbursed in the following years:

Yr 1 0
Yr 2 (10,000)
Yr 3 (5,000)
Yr 4 0
Yr 5 (30,000)
Yr 6 (70,000)
Yr 7 (75,000)
Yr 8 (100,000)

Dividends totaling 1,195,000 disbursed in the following years:

Yr 9 20,000
Yr 10 40,000
Yr 11 35,000
Yr 12 35,000
Yr 13 35,000
Yr 14 35,000
Yr 15 35,000
Yr 16 40,000
Yr 17 50,000
Yr 18 35,000
Yr 19 45,000
Yr 20 45,000
Yr 21 45,000
Yr 22 35,000
Yr 23 25,000
Yr 24 30,000
Yr 25 35,000
Yr 26 35,000
Yr 27 35,000
Yr 28 20,000
Yr 29 25,000
Yr 30 30,000
Yr 31 30,000
Yr 32 30,000
Yr 33 20,000
Yr 34 25,000
Yr 35 30,000
Yr 36 25,000
Yr 37 15,000
Yr 38 15,000
Yr 39 15,000
Yr 40 15,000
Yr 41 15,000
Yr 42 25,000
Yr 43 25,000
Yr 44 20,000
Yr 45 30,000
Yr 46 35,000
Yr 47 20,000
Yr 48 10,000
Yr 49 10,000
Yr 50 20,000

Project 2:

Yr 1 (40,000)
Yr 2 (60,000)
Yr 3 (50,000)
Yr 4 (80,000)
Yr 5 (30,000)
Yr 6 (20,000)
Yr 7 (5,000)
Yr 8 (5,000)
Dividends totaling 4,220,000 disbursed in the following years:

Yr 9 20,000
Yr 10 20,000
Yr 11 30,000
Yr 12 25,000
Yr 13 30,000
Yr 14 30,000
Yr 15 35,000
Yr 16 35,000
Yr 17 40,000
Yr 18 40,000
Yr 19 40,000
Yr 20 45,000
Yr 21 45,000
Yr 22 50,000
Yr 23 50,000
Yr 24 55,000
Yr 25 55,000
Yr 26 60,000
Yr 27 65,000
Yr 28 65,000
Yr 29 70,000
Yr 30 70,000
Yr 31 75,000
Yr 32 80,000
Yr 33 80,000
Yr 34 85,000
Yr 35 90,000
Yr 36 105,000
Yr 37 95,000
Yr 38 140,000
Yr 39 185,000
Yr 40 190,000
Yr 41 195,000
Yr 42 200,000
Yr 43 200,000
Yr 44 205,000
Yr 45 210,000
Yr 46 215,000
Yr 47 220,000
Yr 48 220,000
Yr 49 225,000
Yr 50 230,000

The question asks "From an investor's perspective, compare and contrast the above two projects".

My thoughts were to calculate the NPV of both projects. In doing so, I obtained a (24,413) for Project 1 and (62,752) for Project 2.

Can you please tell me if my NPV calc. is correct, and if I'm on the right track to contrast the two projects? What other areas would you discuss to contrast these two projects?

Any help would be greatly appreciated!!!

Thanks!!!