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Problem #1: The table below provides the estimated end-of-year net cash flows that would be received from alternative projects Red and Blue for an investment
Problem #1: The table below provides the estimated end-of-year net cash flows that would be received from alternative projects Red and Blue for an investment of $200,000. Year 1 Project Red Project Blue $90,000 $40,000 Year 2 $70,000 $60,000 Year 3 $50,000 $80,000 Year 4 $30,000 $72,000 (a) Find the NPV of each project if the cost of capital is 7%. (b) In part (a), which project is better? (c) Find the NPV of each project if the cost of capital is 9%. (d) In part (c), which project is better? Problem #1(a): NPV of Projects Red and Blue (in that order), separated with a comma. Answers correct to 2 decimals. (A) Project Blue (B) Project Red Problem #1(b): Select Problem #1(c): NPV of Projects Red and Blue (in that order), separated with a comma. Answers correct to 2 decimals. (A) Project Blue (B) Project Red Problem #1(d): Select Just Save Submit Problem #1 for Grading Problem #1 Attempt #1 Your Answer: 1(a) 1(b) 1(c) 1(d) Your Mark: 1(a) 1(b) 1(c) 1(d) Attempt #2 1(a) 1(b) 1(c) 1(d) 1(a) 1(b) 1(C) 1(d) Attempt #3 1(a) 1(b) 1(c) 1(d) 1(a) 1(b) 1(c) 1(d) Attempt #4 1(a) 1(b) 1(c) 1d) 1(a) 1(b) 1(c) 1(d) - Attempt #5 1(a) 1(b) 1(c) 1(0) 1(a) 1(b) 1(c) 1(d)
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