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Two projects A and B have a10% cost of capital and the cashflow below, calculate the net present value (NPV) and state if we should
Two projects A and B have a10% cost of capital and the cashflow below, calculate the net present value (NPV) and state if we should invest in the projects and why
Year | Cash Flow (A) | Cash Flow (B) |
0 | -$60,000 | -$70,000 |
1 | 23,000 | 15,000 |
2 | 28,000 | 18,000 |
3 | 21,000 | 26,000 |
4 | 8,000 | 230,000 |
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