Question
Godfall Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 6%. Calculate the net present value for project
Godfall Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 6%. Calculate the net present value for project A. (Round to 2 decimals)
| Year | Project A | Project B |
| 0 | -8,000,000 | -3,250,000 |
| 1 | 2,000,000 | 850,000 |
| 2 | 2,000,000 | 850,000 |
| 3 | 2,000,000 | 850,000 |
| 4 | 2,000,000 | 850,000 |
| 5 | 2,000,000 | 850,000 |
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Public Finance
Authors: Harvey Rosen, Ted Gayer
8th Edition
0073511285, 9780073511283
