A project (A) costs 3,000 today and is expected to generate a cash flow of 10,000 in
Question:
A project (A) costs £3,000 today and is expected to generate a cash flow of £10,000 in a year’s time, whereas an alternative project (B) costing £4,000 today is forecast to generate
£12,000 in two years’ time. Calculate the net present value of each project, and state which project appears to be preferable.
Use a 10% p.a. discount rate. Relevant discount factors are:
Year 1 0.909 Year 2 0.826
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Related Book For 
Accounting And Finance For Business
ISBN: 9780273773948
1st Edition
Authors: Geoff Black, Mahmoud Al-Kilani
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