1. A company is evaluating two projects, A and B. The company's cost of capital has been determined to be12% and the projects have the following investments and cash flow.Initial InvestmentCash Flow12341. What is the net present value of Project A?B. P 13,725.40A. P 9,637.75Project A100,000.0040,000.0050,000.0020,000.0020,000.002. What is the net present value of Project B?A. P 18,365.24B. P 32,751.19C.P 20,216.84C. P 59,992.84Project B90,000.0067,500.0078,750.0020,000.0020,000.00D. P 56,800.00D. P 86,250.00

Cost of Capital 12% Year Project A Project B 0 - 1,00,000.00 ₽ -90,000.00 ₽ 1…

A company is evaluating two projects, A and B. The company's cost of capital has been determined to be % and the projects have the following investments and cash flow. Project A 100,000.00 40,000.00 50,000.00 20,000.00 20,000.00 1. What is the net present value of Project A? A. P 9,637.75 B. P 13,725.40 2. What is the net present value of Project B? B. P 32,751.19 tial Investment sh Flow 1 23 2 3 4 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. P 56,800.00 D. P 86,250.00

A company is evaluating two projects, A and B. The company's cost of capital has been determined to be % and the projects have the following investments and cash flow. Project A 100,000.00 40,000.00 50,000.00 20,000.00 20,000.00 1. What is the net present value of Project A? A. P 9,637.75 B. P 13,725.40 2. What is the net present value of Project B? B. P 32,751.19 tial Investment sh Flow 1 23 2 3 4 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. P 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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