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While project 1 has a higher initial outlay, it has both a shorter payback period and a higher NPV , indicating that this project will generate a higher return and achieve profit in a shorter time than project B. As investing in either projects wont increase the working capital of the firm , the liquidity of the firm wont be affected therefore the firm’s survivability wont be endangered. Hence as the firm can invest in both projects, the firm should invest in project 1 as the investment will result in a larger profit and will achieve profit faster.

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This needs a little help. (Also, why project 1 and project B instead or either project 1 and project 2 OR project A and project B?) I will indicate my suggestions first, then show you the corrected version.

While project 1 has a higher initial outlay, it has both a shorter payback period and a higher NPV [is this term understood by the reader?] , [no space before comma] indicating that this project will generate a higher return and achieve [indefinite article] profit in a shorter time than project B. As investing in either projects [singular noun here] wont [apostrophe after contraction] increase [do you mean decrease?] the working capital of the firm , [no space before comma] the liquidity of the firm wont [apostrophe after contraction] be affected [comma] therefore the firm’s survivability wont [apostrophe after contraction] be endangered. Hence as the firm can invest in both projects, the firm should invest in project 1 as the investment will result in a larger profit and will achieve [indefinite article] profit faster. [The last sentence is unclear. I think you mean to make a choice, not say that the firm can invest in both.]

Corrected paragraph:

While project 1 has a higher initial outlay, it has both a shorter payback period and a higher NPV, indicating that this project will generate a higher return and achieve a profit in a shorter time than project B. As investing in either project won't increase the working capital of the firm, the liquidity of the firm won't be affected, therefore the firm’s survivability won't be endangered. Since the firm can invest in either project, the firm should invest in project 1 as that investment will result in a larger profit and will achieve it sooner.

Any questions?