Question
Please answer within 30 mints ABC Ltd is considering two projects, having features as under: P R O J E C T A P R
Please answer within 30 mints
ABC Ltd is considering two projects, having features as under:
| P R O J E C T A | P R O J E C T B | |||
| PERIOD | COST | CASH FLOW | COST | CASH FLOW |
| 0 | 9000 | - | 12,000 | - |
| 1 | 5,000 | 5,000 | ||
| 2 | 4,000 | 5,000 | ||
| 3 | 3,000 | 8,000 | ||
For each project, find its NPV using a discount rate of 15% . What is your recommendation if projects are mutually exclusive and why?
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Public Finance
Authors: Harvey Rosen, Robert Guell, Ted Gayer
9th Edition
0073511358, 9780073511351
