Question
consider the following two investment projects: Year Investment A end of year cash flows Investment B end of year cash flows 2001 210000 100000 2002
consider the following two investment projects:
| Year | Investment A end of year cash flows | Investment B end of year cash flows |
| 2001 | 210000 | 100000
|
| 2002 | 450000 | 100000 |
| 2003 | 450000
| 100000 |
| 2004 | 610000
| 1000000 |
|
|
Both projects require an investment of 1200000 at the end of 2000. The required rate of return for both projects is 9%.
what is the operating cash flow for project a?
Answer for part 1
what is the operating cash flow for b project?
Answer for part 2
what is the net present value a
Answer for part 3
what is the net present value for project b?
Answer for part 4
what is the profitability index for project A?
Answer for part 5
what is the profitability index for project B?
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Computational Intelligence In Economics And Finance Volume II
Authors: Paul P. Wang, Tzu-Wen Kuo
2007th Edition
3540728201, 978-3540728207
