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Please answer the following question correctly. Don't answer the question if you don't know the answer. QUESTION: Mrs Aisha is a successful business woman and
Please answer the following question correctly. Don't answer the question if you don't know the answer.
QUESTION:
Mrs Aisha is a successful business woman and she invests in the projects that have early paybacks and generate high NPV. Her manager has recently proposed her two projects for the investment. The details of the both the projects are given below.
(discount rate = 10%)
Write answer of part A .
years | Cash flow - 1 | Cash flow 2 |
0 | (15000) | (16000) |
1 | 5000 | 2000 |
2 | 4500 | 3400 |
3 | 6000 | 8000 |
4 | 2000 | 7000 |
Calculate
(A) NPV for the second project
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