Question
Please explain and show all work including equations. Calculate the Net Present Value and the Annualized Net Present Value for the two projects with the
Please explain and show all work including equations.
Calculate the Net Present Value and the Annualized Net Present Value for the two projects with the following cash flow streams given an MARR of 15%. Which project is preferable based on the NPV? Which is preferable based on the ANPV? Which of the two techniques should be used in this case? Why?
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| CF1 | -$54,687 | $32,567 | $28,456 | $30,423 | ||
| CF2 | -$98,435 | $28,954 | $31,984 | $36,976 | $38,984 | $42,978 |
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Short Term Financial Management
Authors: John Zietlow, Matthew Hill, Terry Maness
5th Edition
1516512405, 9781516512409
