1.2 Suppose UZALO and MUVHANGO are involved in a Heritage Day project. They need to hire two acting extras for this project, using the net cash flows: Y UZALO Project Cash flow MUVHANGO Project Cash flow 0 1 2 3 80 000 31 000 31 000 31 000 NPV = 80 000 C (1 + i) 0 0 Calculate the NPV for both projects at 8.5% interest rate. Which one will you audition for? 110 000

1.2 Suppose UZALO and MUVHANGO are involved in a Heritage Day project. They need to hire two acting extras for this project, using the net cash flows: Y UZALO Project Cash flow MUVHANGO Project Cash flow 0 1 2 3 80 000 31 000 31 000 31 000 NPV = 80 000 C (1 + i) 0 0 Calculate the NPV for both projects at 8.5% interest rate. Which one will you audition for? 110 000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 21P

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