Question
#31 A firm is considering two projects, A and B. Each project will last for 4 years. The projects are INDEPENDENT. The projected cash flows
#31
A firm is considering two projects, A and B. Each project will last for 4 years. The projects are INDEPENDENT. The projected cash flows for each project are shown below:
| Year | 0 | 1 | 2 | 3 | 4 |
|---|---|---|---|---|---|
| Project A | -20.00 | 8.00 | 8.00 | 7.00 | 5.00 |
| Project B | -31.00 | 9.00 | 9.00 | 9.00 | 7.00 |
The cost of capital for the firm is 8.00%.
What is the NPV for project A at the cost of capital?
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Answer format: Currency: Round to: 2 decimal places
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Calculus Early Transcendentals
Authors: James Stewart
8th edition
978-1285741550
