Question
24)Use the following information to answer question 24 and 25. Values in the table area cash flows in that year. The projects are independent of
24)Use the following information to answer question 24 and 25. Values in the table area cash flows in that year. The projects are independent of each other. The required rate of return for all projects is 13%.
|
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Project April | ($1,000) | $0 | $0 | $0 | $0 | $1,900 |
| Project June | ($21,000) | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Project July | ($5,120) | $1,000 | $1,000 | $2,000 | $0 | $2,000 |
Which of the following is closest to the NPV of Project July?
a. ($980)
b. ($558)
c. $0
d. $558
e. $980
25)Which of the following comes closest to the NPV of Project April?
a. ($19)
b. $19
c. $31
d. $180
e. $266
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The Oxford Guide To Financial Modeling
Authors: Thomas S Y Ho, Sang Bin Lee
1st Edition
019516962X, 9780195169621
