Question
Consider the following cash flows of two mutually exclusive projects for AZ Motorcars. Assume the discount rate for both projects is 9 percent. Year AZM
Consider the following cash flows of two mutually exclusive projects for AZ Motorcars. Assume the discount rate for both projects is 9 percent.
| Year | AZM Mini-SUV | AZF Full-SUV | ||||
| 0 | $ | 460,000 | $ | 810,000 | ||
| 1 | 322,000 | 352,000 | ||||
| 2 | 184,000 | 424,000 | ||||
| 3 | 152,000 | 292,000 | ||||
b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
| NPV | |
| AZM Mini-SUV | $ |
| AZF Full-SUV | $ |
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School Finance A Policy Perspective
Authors: Allan Odden, Lawrence Picus
6th Edition
1259922316, 9781259922312
