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Denign References Mailings Review View Help Tell me what you want to de SEP 26 You are considering the following two projects and can
Denign References Mailings Review View Help Tell me what you want to de SEP 26 You are considering the following two projects and can only take one. Your cost of capital is 11%. 0 A $100 B -$100 1 2 3 25 25 30 40 50 50 50 40 30 30 What is the NPV of each project at your cost of capital? NPV for Project A: -100+ [25/(1+0.11]^1]+[30/(1+0.11)^2]+[40/(1+0.11)^3]+[50/(1+0.11)^4] =-100+109.0553995 = 9.0553995 9.055% (2 d.p.) NPV for Project B: I -100+ [50/(1+0.11)^1 ]+[40/(1+0.11)^2]+[30/(1+0.11)^3]+[20/(1+0.11)^4] 20 20
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
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