Question
Project A cost $6,000 and Project B cost $18,000, there expected net cash inflows are shown on the timeline below in the image and there
Project A cost $6,000 and Project B cost $18,000, there expected net cash inflows are shown on the timeline below in the image and there interest rate is 14 percent. What is Project A's net present value (NPV)?
Year | Project A | Project B |
0 | -$6,000 | -$18,000 |
1 | $2,000 | $5,600 |
2 | $2,000 | $5,600 |
3 | $2,000 | $5,600 |
4 | $2,000 | $5,600 |
5 | $2,000 | $5,600 |
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
13th edition
1285198840, 978-1285198842
