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Suppose you are the financial manager of a firm considering the following five projects. Calculate the NPV for each project, assuming a discount rate of
Suppose you are the financial manager of a firm considering the following five projects.
- Calculate the NPV for each project, assuming a discount rate of 11%.
| Project A | Project B | Project C | Project D | Project E | |
| Initial Investment | -$10,000 | -$15,000 | -$14,000 | -$6,000 | -$1,500 |
| Year 1 | $5,000 | $5,000 | $6,000 | $4,000 | $1,000 |
| Year 2 | $4,000 | $5,000 | $4,000 | $2,000 | $250 |
| Year 3 | $2,000 | $5,000 | $3,500 | $2,000 | $100 |
| Year 4 | $1,000 | $5,000 | $2,500 | $2,000 | $100 |
| Year 5 | $5,000 | $2,000 | $100 | ||
| Year 6 | $2,000 | $100 |
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Computational Techniques In Economics And Finance
Authors: Constantin Zopounidis
1st Edition
1613245580, 978-1613245583
