Question
Option #1: NPV The following amounts, including the initial capital investment and subsequent yearly returns on investment, have been established for two alternative projects: Years
Option #1: NPV
The following amounts, including the initial capital investment and subsequent yearly returns on investment, have been established for two alternative projects:
| Years | |||||
| Project | 0 | 1 | 2 | 3 | 4 |
| A | -$120,000 | $30,000 | $45,000 | $60,000 | $40,000 |
| B | -$220,000 | $65,000 | $80,000 | $80,000 | $90,000 |
Use Excel to calculate the NPV values for the two projects with the discount rates of 5%, 10% and 15% using proper formulas in Excel.
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Quantitative Analysis For Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna
11th Edition
9780132997621, 132149117, 132997622, 978-0132149112
