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Consider the following cash flows for two mutually exclusive capital investment projects. The required rate of return is 16%. Use this information for the next
Consider the following cash flows for two mutually exclusive capital investment projects. The required rate of return is 16%. Use this information for the next 3 questions. Year Project A Cash Flow Project B Cash Flow 0 ($50,000) ($20,000) 1 15,000 6,000 2 15,000 6,000 3 15,000 6,000 4 13,500 5,400 5 13,500 5,400 6 6,750 5,400 Calculate the net present value of project A.
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a.342.28 b.1564.25 c.1245.11 d. 2709.21 e. 3802
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