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Week 5 CNOW Assignment Calculator provided below. Rydell's cost of capital is 8%. Project A Project B This project requires an initial investment of $167,500.
Week 5 CNOW Assignment Calculator provided below. Rydell's cost of capital is 8%. Project A Project B This project requires an initial investment of $167,500. The project will have a life of 8 years. Annual revenues associated with the project will be $130,000 and expenses associated with the project will be $35,000. This project requires an initial investment of $137,500. The project will have a life of 7 years. Annual revenues associated with the project will be $109,000 and expenses associated with the project will be $60,000 Calculate the net present value and the present value index for each project using the present value tables provided below. Present Value of $1 (a single sum) at Compound Interest. Present Value of an Annuity of $1 at Compound Interest. Note: Use a minus sign to indicate a negative NPV. If an amount is zero, enter"0". Enter the present value index to 2 decimals Project A Project B Total present value of net cash flow Amount to be invested Net present value Present value index Project A Project B
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