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Project A Project B Initial Outlay (50,000) (70,000) Inflow Year 1 12,000 13,000 Inflow Year 2 12,000 13,000 Inflow Year 3 12,000 13,000 Inflow Year
Project A | Project B | |
Initial Outlay | (50,000) | (70,000) |
Inflow Year 1 | 12,000 | 13,000 |
Inflow Year 2 | 12,000 | 13,000 |
Inflow Year 3 | 12,000 | 13,000 |
Inflow Year 4 | 12,000 | 13,000 |
Inflow Year 5 | 12,000 | 13,000 |
Inflow Year 6 | 12,000 | 13,000 |
You are considering 2 independent projects, A and B. The required rate of return for both projects is 12%. Calculate NPV and indicate if the projects should be accepted.
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