Question
Calculate the NPV for the given projects using the specified discount rates. Project Initial Investment Cash Flow Year 1 Cash Flow Year 2 Cash Flow
Calculate the NPV for the given projects using the specified discount rates.
Project | Initial Investment | Cash Flow Year 1 | Cash Flow Year 2 | Cash Flow Year 3 | Discount Rate |
A | $100,000 | $30,000 | $50,000 | $70,000 | 10% |
B | $150,000 | $40,000 | $60,000 | $90,000 | 8% |
What is the NPV for Project AWhat is the NPV for Project B?
Requirement: Calculate the NPV for Project A and Project B under different conditions.
What is the NPV for Project A if the discount rate increases to 12%?
What is the NPV for Project B if the cash flows are reduced by 10% each year?
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Survey of Accounting
Authors: Carl S. Warren
8th edition
1305961889, 978-1337517386, 1337517380, 978-1305961883
