Question
Consider the following cash flows for projects A and B. Year Project A Project B 0 -$1000 -$1000 1 375 900 2 375 700 3
Consider the following cash flows for projects A and B.
Year Project A Project B
0 -$1000 -$1000
1 375 900
2 375 700
3 375 500
4 375 -200
5 -100 200
The cost of capital for both projects is 10%.
What is the NPV of projects A and B, respectively?
| 1. | $126.61 (A), $759.93(B) | |
| 2. | $136.61 (A), $719.93(B) | |
| 3. | $709.93 (A), $126.61 (B) | |
| 4. | $159.93(A), 726.61 (B) |
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Short Term Financial Management
Authors: Terry S. Maness, John T. Zietlow
3rd Edition
0324202938, 978-0324202939
