b) A construction company has identified the following two mutually exclusive projects. The company used 10% discount rate Cash flows (Project A) ($100,000) 50,000 40,000 30,000 30,000 Cash flows (Project B) ($100,000) Year 1 40,000 40,000 40,000 40,000 3 4 Calculate Net Present Value and Actual Rate of return for both the projects. How will you evaluate each project using these project evaluation methods?

Question
b) A construction company has identified the following two mutually exclusive projects. The
company used 10% discount rate
Cash flows (Project A)
($100,000)
50,000
40,000
30,000
30,000
Cash flows (Project B)
($100,000)
Year
1
40,000
40,000
40,000
40,000
3
4
Calculate Net Present Value and Actual Rate of return for both the projects. How will you evaluate each
project using these project evaluation methods?
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Transcribed Image Text

b) A construction company has identified the following two mutually exclusive projects. The company used 10% discount rate Cash flows (Project A) ($100,000) 50,000 40,000 30,000 30,000 Cash flows (Project B) ($100,000) Year 1 40,000 40,000 40,000 40,000 3 4 Calculate Net Present Value and Actual Rate of return for both the projects. How will you evaluate each project using these project evaluation methods?