1. A company is evaluating two projects, A and B. The company's cost of capital has been determined to be 12% and the projects have the following investments and cash flow. Initial Investment Cash Flow 1 2 3 4 Project A 100,000.00 40,000.00 50,000.00 20,000.00 20,000.00 What is the net present value of Project A? A. P 9,637.75 B. P 13,725.40 What is the net present value of Project B? B. P 32,751.19 A. P 18,365.24 C. P 20,216.84 C. P 59,992.84 Project B 90,000.00 67,500.00 78,750.00 20,000.00 20,000.00 D. € 56,800.00 D. P 86,250.00
1. A company is evaluating two projects, A and B. The company's cost of capital has been determined to be 12% and the projects have the following investments and cash flow. Initial Investment Cash Flow 1 2 3 4 Project A 100,000.00 40,000.00 50,000.00 20,000.00 20,000.00 What is the net present value of Project A? A. P 9,637.75 B. P 13,725.40 What is the net present value of Project B? B. P 32,751.19 A. P 18,365.24 C. P 20,216.84 C. P 59,992.84 Project B 90,000.00 67,500.00 78,750.00 20,000.00 20,000.00 D. € 56,800.00 D. P 86,250.00
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 22E
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