Net Present ValueUnequal Lives
Project 1 requires an original investment of $31,400. The project will yield cash flows of $8,000 per year for 10 years. Project 2 has a calculated net present value of $9,300 over a eight-year life. Project 1 could be sold at the end of eight years for a price of $39,000.
My Collection - Stations - Pando X CengageNOWv2 | Online teachin X course hero - Bing X Course Hero X + X C & https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false to to . . Ch. 26, Quiz B Net Present Value-Unequal Lives ? Project 1 requires an original investment of $31,400. The project will yield cash flows of $8,000 per year for 10 years. Project 2 has a calculated net present value of $9,300 over a eight-year life. Project 1 could be sold at the end of eight years for a price of $39,000. Use the Present Value of $1 at Compound Interest and the Present Value of an Annuity of $1 at Compound Interest tables shown below. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 Co 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0. 194 10 0.558 0.386 0.322 0.247 0.162 OneDrive X Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% Screenshot saved The screenshot was added to your 1 0.943 0.909 0.893 0.870 0.833 OneDrive. Type here to search O X 7:01 PM 91OF 8/9/2021 8My Collection - Stations - Pando X CengageNOWv2 | Online teachin X course hero - Bing X Course Hero X + X C @ https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false to . . Ch. 26, Quiz B 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0. 194 ? 10 0.558 0.386 0.322 0.247 0.162 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 UT 4.212 3.791 3.605 3.352 2.991 6 4.917 4.355 4.111 3.784 3.326 V 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 a. Determine the net present value of Project 1 over a eight-year life with residual value, assuming a minimum rate of return of 20%. If required. round to the nearest dollar. OneDrive X b. Which project provides the greatest net present value? Screenshot saved The screenshot was added to your OneDrive. B new notifications Type here to search O 7:01 PM 91OF 8/9/2021
