Question
#32 A firm is considering two projects, A and B. Each project will last for 4 years. The projects are INDEPENDENT. The projected cash flows
#32
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 of project B at the cost of capital?
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Answer format: Currency: Round to: 2 decimal places.
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Digital Finance Big Data Start-ups And The Future Of Financial Services
Authors: Perry Beaumont
1st Edition
0367146797, 978-0367146795
