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 Bs 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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Financial Statement Analysis
Authors: Martin S. Fridson, Fernando Alvarez
5th Edition
1119457149, 978-1119457145
