Question
Consider the following two projects: Project Year 0 C/F Year 1 C/F Year 2 C/F Year 3 C/F Year 4 C/F Year 5 C/F Year
Consider the following two projects:
| Project | Year 0 C/F | Year 1 C/F | Year 2 C/F | Year 3 C/F | Year 4 C/F | Year 5 C/F | Year 6 C/F | Year 7 C/F | Discount Rate |
| Alpha | 79 | 20 | 25 | 30 | 35 | 40 | N/A | N/A | 14% |
| Beta | 80 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 15% |
The net present value (NPV) for project beta is closest to:
A.
$29
B.
$19
C.
$24
D. 17
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Corporate And Project Finance Modeling Theory And Practice
Authors: Edward Bodmer
1st Edition
1118854365, 9781118854365
