Question
You are a Financial Analyst in the Projects Department of your bank. Your Director has asked you to analyze two proposed capital investments, Projects
You are a Financial Analyst in the Projects Department of your bank. Your Director has asked you to analyze two proposed capital investments, Projects X and Y. Each project has a cost of $200,000.00, and the required rate of return for each project is 10 percent. The projects' expected net cash flows are detailed in the table below. Calculate the Net Present Value for Project Y EXPECTED NET CASH FLOWS YEAR 0 1 PROJECT X PROJECT Y S(200,000.00) $(200,000.00) 65.000.00 75,000.00 2 130.000.00 100,000.00 3 40,000.00 15,000.00 10.000.00 15,000.00
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Financial Management Theory & Practice
Authors: Eugene BrighamMichael Ehrhardt
12th Edition
0324652178, 9780324652178
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