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Need to find the total present value of net cash flow project A and B View History Bookmarks Window Help Su v2.cengagenow.com C CengageNOWv2 |

Need to find the total present value of net cash flow project A and B

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View History Bookmarks Window Help Su v2.cengagenow.com C CengageNOWv2 | Online teaching and le.. C dcb946a8-2cb5-47ac-88c2-3e4889ed... C dcb946a8-2cb5-47ac-88c2-3e4889e.. C dcb946a8-2cb5-47ac-88c2- Week 5 CNOW Assignment Calculator APPLY THE CONCEPTS: Net present value and Present value index Ewing Industries is looking to invest in Project A or Project B. The data surrounding each project is provided below. Ewing's cost of capital is 11%. Project A Project B This project requires an initial investment of This project requires an initial investment of $175,000. The project will have a life of 6 $135,000. The project will have a life of 4 years. Annual revenues associated with the years. Annual revenues associated with the project will be $130,000 and expenses project will be $109,000 and expenses associated with the project will be $35,000. associated with the project will be $60,000. Calculate the net present value and the present value index for each project using the present value tables provided below. Present Value of $1 (a single sum) at Compound Interest. Present Value of an Annuity of $1 at Compound Interest. Note: . Use a minus sign to indicate a negative NPV. . If an amount is zero, enter "0". . Enter the present value index to 2 decimals. Project A Project B Total present value of net cash flow $ Amount to be invested 175,000 135,000 Check My Work Next

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