Question
Pizza Z corporation is considering two independent projects. we will call them projects GF and G. Project GF is expected to cost $45,310, and project
Pizza Z corporation is considering two independent projects. we will call them projects GF and G. Project GF is expected to cost $45,310, and project G is expected to cost $36,990. Each project's expected cash flows are presented below. Both project GF and G have similar risks to all other projects at Pizza Z. And the weighted average cost of capital for Pizza Z is 9.73%. Calculate the net present value of both projects, and enter in the box below how much the value of the firm is expected to increase based on this capital budget (please enter the amount to the nearest penny).
| Project GF | Project G | |
| Year 1 | $11,482 | $8,434 |
| Year 2 | $11,596 | $10,279 |
| Year 3 | $13,091 | $14,337 |
| Year 4 | $11,282 | $15,983 |
| Year 5 | $12,150 | $14,713 |
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Asia Bond Monitor June 2016
Authors: Asian Development Bank
1st Edition
9292574930,9292574949
