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Information relates to Questions 1 and 2 You have been provided with 3 projects that have different lives per the table below. Time 0 1
Information relates to Questions 1 and 2 You have been provided with 3 projects that have different lives per the table below. Time 0 1 2 3 4 -5010 3596 3613 1622 1530 Proj. A Proj. B Proj. -4420 6567 5908 5599 -5258 6968 4157 Assuming a risk-free rate of 10%: 1. The best and worst projects are: a. Cannot be calculated as projects have unequal lives b. Proj. B and Proj. A c. Proj. A and Proj. B d. Proj. C and Proj. B 2. Project B and C's true NPV (assuming equivalent economic lives) are closest to: a. 13 654.00 and 5 867.00 b. 17 714.37 and 7 541.99 c. 7541.99 and 29 150.35 d. 29 150.35 and 17 714.37
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