Question
Zayas, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 - 78500 -78500 1 43000 21000 2
Zayas, LLC, has identified the following two mutually exclusive projects:
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | - 78500 | -78500 |
| 1 | 43000 | 21000 |
| 2 | 29000 | 28000 |
| 3 | 23000 | 34000 |
| 4 | 21000 | 41000 |
if the required return is 11 percent, what is the NVP for each of these projects? Which project will you choose if you apply the NVP decision rule?
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Finance With Monte Carlo
Authors: Ronald W. Shonkwiler
2013th Edition
146148510X, 978-1461485100
