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project A or B? Can anyone help me with this please? Project A requires an original investment of $65,000. The project will yield cash flows
project A or B?
Can anyone help me with this please?
Project A requires an original investment of $65,000. The project will yield cash flows of $15,000 per year for seven years. Project B has a calculated net present value of $5,500 over a five year life. Project A could be sold at the end of five years for a price of $30,000. Below is a table for the present value of $1 at compound Interest. Year 6% 10% 12% 1.943 .909.893 2.890.826.797 3.840.751.712 4 .792.683.636 5.747.621.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1.943.909.893 21.8331.7361.690 32.6732.4872.402 43.4653.1703.037 54.2123.7913.605 Use the tables above. Determine the net present value of Protect A over a five-year life with salvage value assuming a minimum rate of return of 12%. $ b. Which protect provides the Greatest net present value? project A or B? Can anyone help me with this pleaseStep by Step Solution
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