Question
Consider two mutually exclusive projects that will be conducted for a total of 6 years. Project A lasts 3 years (so it will need to
Consider two mutually exclusive projects that will be conducted for a total of 6 years. Project A lasts 3 years (so it will need to be repeated 1 time) and has the following cash flow: Year 0 -$19,000; Year 1 $15,000; Year 2 $12,000; Year 3 $12,000. Project B lasts 2 years (so it will need to be repeated 2 times) and has the following cash flow: Year 0 -$29,000; Year 1 $22,000; Year 2 $17,000. Assume both projects can be repeated with the identical cash flows. The interest rate is 18.3%. Provide the net present worth for 6 YEARS of the project that you should select. If neither project should be selected, enter 0.
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