Question
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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Analyzing Project A and Project B Given Cost of capital 11 Cash flow...
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
