Question
Question #10 : Perry Inc. uses the Net Present Value method and requires a return of 11%. Perry Inc. is considering the following 2 mutually
Question #10: Perry Inc. uses the Net Present Value method and requires a return of 11%. Perry Inc. is considering the following 2 mutually exclusive projects:
| Cash Flow for | ||
| Year | Project A | Project B |
| 0 | -$77,500 | -$77,500 |
| 1 | $43,000 | $21,000 |
| 2 | $29,000 | $28,000 |
| 3 | $23,000 | $34,000 |
| 4 | $21,000 | $41,000 |
Required:
- Using the Net Present Value method, should Perry accept or reject Project A? Project B?
- why?
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Marketplace Lending Financial Analysis And The Future Of Credit Integration Profitability And Risk Management
Authors: Ioannis Akkizidis, Manuel Stagars
1st Edition
1119099161, 978-1119099161
