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Please show work of how to get to the given answers below by using the data given. Thank you! Your division is considering two investment
Please show work of how to get to the given answers below by using the data given.
Thank you!
Your division is considering two investment projects, each of which requires an up-front expenditure of $22 million. Project A will have cash flows of $3 million in year 1, $4 million in year 2, $8 million in year 3, and $18 million in year 4. Project B will have cash flows of $17 million in year 1, $9 million in year 2, $4 million in year 3, and $2 million in year 4.
Assume the projects are independent. What is Project A's net present value, assuming the cost of capital is 13% ? What is Project B's net present value, assuming the cost of capital is 13% ? At this cost of capital, do you accept or reject Project A? I At this cost of capital, do you accept or reject Project B? | Partial Credit Acceptable answer for BLANK-1 is $371,592.39 Responses must be an exact match Acceptable answer for BLANK-2 is $4,091,406.04 Responses must be an exact match Acceptable answer for BLANK-3 is accept Responses must be an exact match Acceptable answer for BLANK-4 is accept Responses must be an exact matchStep by Step Solution
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