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 A
(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 | $(102,000) | $(102,000) | |
| 1 | 30,000 | 00 | |
| 2 | 30,000 | 00 | |
| 3 | 30,000 | 00 | |
| 4 | 30,000 | 00 | |
| 5 | 30,000 | 210,000 |
If the appropriate discount rate on these projects is 11 percent, which would be chosen and why?
The NPV of Project B is $nothing.(Round to the nearest cent.)
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Raising Venture Capital
Authors: Rupert Pearce, Simon Barnes
1st Edition
0470027576, 978-0470027578
