Question
I need help solving the following questions since they are both part of one question. The first question is as follows: The following are the
I need help solving the following questions since they are both part of one question. The first question is as follows: The following are the cash flows of the projects.
Year ProjectA. ProjectB
0 (220) (220)
1 100 120
2 100 120
3 100 120
4 100
A. Calculate the NVP for both projects if the discount rate is 10%.
C. Suppose that you can choose only one of these projects. Which would you choose if either?
Part2
Compute the future value of a $200 cash flow for the following combinations of rates and times.
A. r = 8% t = 10 years
B. r = 8% t = 20 years
C. r = 4% t = 10 years
D. r = 4% t = 20 years
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