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Jackson Manufacturing has $90,000 to invest in either Project A or Project B, The following data are available on these projects: Project A Project B
Jackson Manufacturing has $90,000 to invest in either Project A or Project B, The following data are available on these projects: Project A Project B Cost of equipment needed now.. $180,000 $80,000 Working capital investment needed now $100,000 Annual cash operating inflows $49,000 $50,000 Salvage value of equipment in 6 years $20,000 Both projects will have a useful life of six years. At the end of six years, the working capital investment will be released for use elsewhere. Jacksons required rate of return is 12%. Required: Calculate each projects net present value
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