Project A has an initial investment of $42,000 and net cash flows of $14,000 per year for 5 years at n = 10%. The expenses and depreciation have already been adjusted.

Calculate the Net Present value using Table 2 Ordinary annuity table

Do you accept this project?

Which is better, A or B based on NPV?

Project B has an initial cost of $45,000 with the following unequal cash flows (already adjusted for expenses and depreciation). Calculate the Net Present Valuen= 10%...

Year 1 $28,000

Year 2 $12,000

Year 3 $10,000

Year 4 $10,000

Year 5 $10,000

Calculate Net present value using Table 1..single sum for each

Do you accept this project?

Now Compare Project A and Bwhich should be chosen?...Use index to compare