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Jewel is also looking to expand this project to its store on the South side. If the expected cash flows are as follows, what is
Jewel is also looking to expand this project to its store on the South side. If the expected cash flows are as follows, what is the NPV for the following, assuming WACC = 9%
- the NW Jewel
- the SW side Jewel
- Which project is "better" in terms of NPV?
| Year | Cash Flow Jewel North Side | Cash Flow Jewel South Side |
| 0 | ($6,250.00) | ($5,800.00) |
| 1 | $2,000.00 | $1,800.00 |
| 2 | $2,025.00 | $2,200.00 |
| 3 | $2,050.00 | $2,400.00 |
| 4 | $2,075.00 | $2,000.00 |
| 5 | $2,100.00 | $1,000.00 |
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Investment Science
Authors: David G. Luenberger
1st International Edition
0195391063, 9780195391060
