Kardashian investment company is evaluating two different capital investments, project north and project south. Both projects would cost $210,000 and the kardashian investment company cannot afford to do both. The kardashhian company expects that project north would provide net cash inflows of $62,000 per year for five years. For project south, the bet cash inflows are expected to be as follows.

YEAR 1 - $44,000

YEAR 2 - $48,000

YEAR 3 - $60,000

YEAR 4 - $76,000

YEAR 5 - $80,000

YEAR 6 - $308,000

Kardashian investment companys cost of capital is 12%.

USE THE APPROPRIATE FACTORS FROM THE TABLE BELOW

1. Calculate the net present value for project North and for Project South. Round net present to the nearest dollar.
2. Discuss which project you recommend as an investment and why.

Copyright (4) McGrawHill LLC permission required for reorodurfinn ar dienlau Copyright @ McGrawHill LLC permiseinn manaiond ta...AL