Question
Kindly use excel 5. Compare the following projects using the NPV method and the EAA method if the cost of capital is 18%. Year Project
Kindly use excel
5. Compare the following projects using the NPV method and the EAA method if the cost of capital is 18%.
| Year | Project A | Project B |
| 0 | ($500,000) | ($500,000) |
| 1 | $175,000 | $155,000 |
| 2 | $225,000 | $155,000 |
| 3 | $300,000 | $155,000 |
| 4 | $200,000 | $155,000 |
| 5 | $155,000 | |
| 6 | $155,000 | |
| 7 | $155,000 | |
| 8 | $155,000 |
6. Use the information given in problem 5 to replicate Project A and compute the NPV of the new project that lasts for 8 years.
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Using QuickBooks Accountant 2018 For Accounting
Authors: Glenn Owen
16th Edition
9780357042083
