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Labeau Products Ltd., of Perth, Australia, has $47,000 to invest. The company is trying to decide between two alternative uses for the funds, as
Labeau Products Ltd., of Perth, Australia, has $47,000 to invest. The company is trying to decide between two alternative uses for the funds, as follows: Investment Options Project X Project Y Initial Investment Annual cash inflows Single cash inflow at the end of 10 years Life of the project $ 47,000 15,000 $ 47,000 210,000 10 years 10 years Labeau's discount rate for both projects is 18%. (ignore income taxes.) Click here to view Exhibit 10-1 and Exhibit 10-2. to determine the appropriate discount factor(s) using tables. Required: Determine the net present value. (Negative amounts should be indicated with a minus sign. Round discount factor(s) to 3 decimal places.) Net Present Value Project X Project Y
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