XYZ Construction is considering two projects to develop. The expected cash inflows are as follows : Project M Project N Year 110,00025,000 Year 215,00025,000 Year
XYZ Construction is considering two projects to develop. The expected cash inflows are as follows :
Project MProject N
Year 110,00025,000
Year 215,00025,000
Year 3 20,00025,000
Year 425,00025,000
Year 530,00025,000
Each Project requires an investment of $100,000. A rate of 10% has been selected for the NPV Analysis.
Required :
Calculate the NPV and the Profitability Index and suggest which project should be
recommended based on each method.
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Authors: Jeffrey M Wooldridge, J M Wooldridge
2nd Edition
0262232588, 9780262232586
