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Management of Blossom Measures, Inc., is evaluating two independent projects. The company uses a 11.00 percent discount rate for such projects. The costs and cash
Management of Blossom Measures, Inc., is evaluating two independent projects. The company uses a 11.00 percent discount rate for such projects. The costs and cash flows for the projects are shown in the following table.
Year | Project 1 | Project 2 | ||||
0 | - $7,912,840 | - $10,261,200 | ||||
1 | 3,293,400 | 2,051,330 | ||||
2 | 1,838,290 | 3,478,800 | ||||
3 | 1,237,600 | 3,253,090 | ||||
4 | 1,268,900 | 3,814,310 | ||||
5 | 1,281,380 | 4,470,780 | ||||
6 | 1,473,940 | |||||
7 | 1,489,290 |
What are their NPVs? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)
The NPV of Project 1 is $_______ and the NPV of Project 2 is $_______
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