Question
Darling Corp. is looking to invest in Project A or Project B. The data surrounding each project is provided below. Darling's cost of capital is
Darling Corp. is looking to invest in Project A or Project B. The data surrounding each project is provided below. Darling's cost of capital is 10%.
Project A
This project requires an initial investment of $167,500. The project will have a life of 3 years. Annual revenues associated with the project will be $130,000andexpenses associated with the project will be $35,000.
- Total present value of net cash flow=-------------
- Amount to be invested=$167,500
- Net present value=--------------
Project B
This project requires an initial investment of $130,000. The project will have a life of 5 years. Annual revenues associated with the project will be $115,000andexpenses associated with the project will be $60,000.
- Total present value of net cash flow=-------------
- Amount to be invested=$130,000
- Net present value=--------------
How is the total present value of net cash flow found an net present value found with the given information
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