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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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
