Question
Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the following table, and indicate whether
Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the following table, and indicate whether each is acceptable. Please complete table.
|
| Project A | Project B |
| Initial investment (CF0) | $26,000 | $500,000 |
| Year (t) | Cash inflows (CFt) | |
| 1 | $4,000 | $100,000 |
| 2 | 4,000 | 120,000 |
| 3 | 4,000 | 140,000 |
| 4 | 4,000 | 160,000 |
| 5 | 4,000 | 180,000 |
| 6 | 4,000 | 200,000 |
| 7 | 4,000 |
|
| 8 | 4,000 |
|
| 9 | 4,000 |
|
| 10 | 4,000 |
|
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Health Care Finance And The Mechanics Of Insurance And Reimbursement
Authors: Michael K. Harrington
1st Edition
1284026124, 9781284026122
