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A. Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount should be indicated by a minus sign.
A.
Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
Project M | ||||||
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow: | $1,900 | $530 | $660 | $700 | $780 | $280 |
B.
Compute the NPV statistic for Project Y if the appropriate cost of capital is 12 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
Project Y | |||||
Time: | 0 | 1 | 2 | 3 | 4 |
Cash flow: | $8,900 | $3,530 | $4,360 | $1,700 | $480 |
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