Question
(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Year Project
(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows:
| Year | Project A Cash Flow | Project B Cash flow |
| 0 | -95,000 | -95,000 |
| 1 | 37,000 | 0 |
| 2 | 37,000 | 0 |
| 3 | 97,000 | 0 |
| 4 | 37,000 | 0 |
| 5 | 37,000 | 240,003 |
If the appropriate discount rate on these projects is 11%
a.What is the NVP of Project A
b.What is the NVPof Project B
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
5th Edition
0078034663, 978-0078034664
