Question
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
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 | -19.00 | 9.00 | 7.00 | 7.00 | 4.00 |
| Project B | -31.00 | 13.00 | 12.00 | 11.00 | 8.00 |
The cost of capital for the firm is 9.00%.
What is the NPV for project A at the cost of capital?
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Bitcoin Technical Innovations From The Trenches
Authors: Sjors Provoost
1st Edition
9090360425, 978-9090360423
