Question
Q20-22 A firm is considering two projects, A and B. Each project will last for 4 years. The projects are INDEPENDENT. The projected cash flows
Q20-22
A firm is considering two projects, A and B. Each project will last for 4 years. The projects are INDEPENDENT. The projected cash flows for each project are shown below:
| Year | 0 | 1 | 2 | 3 | 4 |
|---|---|---|---|---|---|
| Project A | -19.00 | 8.00 | 8.00 | 6.00 | 5.00 |
| Project B | -30.00 | 12.00 | 13.00 | 9.00 | 7.00 |
The cost of capital for the firm is 12.00%.
a] What is the NPV for project A at the cost of capital?
b] What is the NPV of project B at the cost of capital?
c] With the projects independent, what projects will you accept given the firm's cost of capital? (A, B, BOTH, or NONE)
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The Nft Guide Learn How To Buy Sell Collect And Mint Non Fungible Tokens
Authors: Thomas Jase
1st Edition
