Question
Year Project P Cash Flow Project Q Cash Flow 0 -$35,000 -$45,000 1 $12,000 $15,000 2 $15,000 $18,000 3 $18,000 $22,000 4 $20,000 $25,000 Assuming
Year | Project P Cash Flow | Project Q Cash Flow |
0 | -$35,000 | -$45,000 |
1 | $12,000 | $15,000 |
2 | $15,000 | $18,000 |
3 | $18,000 | $22,000 |
4 | $20,000 | $25,000 |
Assuming a discount rate of 6%, determine the NPV for each project and recommend the better investment.
Requirements:- Calculate the NPV for Project P.
- Calculate the NPV for Project Q.
- Recommend the better investment.
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Managerial Accounting The Cornerstone Of Business Decision Making
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
8th Edition
0357715349, 978-0357715345
