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A firm is considering the two following projects with amounts in SAR. (a) Calculate the NPV for each project assuming a discount rate of 5%.
| A firm is considering the two following projects with amounts in SAR. | ||
| (a) Calculate the NPV for each project assuming a discount rate of 5%. | ||
| (b) Explain which project is better and why. | ||
| Data | ||
| Project A | Project B | |
| Rate | 5% | 5% |
| Cash outflow: | -23,000,000 | -63,000,000 |
| Cash Inflows: | 3,500,000 | 19,000,000 |
| 7,500,000 | 15,000,000 | |
| 10,000,000 | 9,000,000 | |
| 12,000,000 | 8,000,000 | |
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Methods And Finance
Authors: Emiliano Ippoliti, Ping Chen
1st Edition
3319498711, 978-3319498713
