b) A construction company has identified the following two mutually exclusive projects. The company used 10% discount rate Cash flows (Project A) ($100,000) Cash flows (Project B) ($100,000) Year 1. 50,000 40,000 2 40,000 40,000 30,000 40,000 30,000 40,000 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)
Cash flows (Project B)
($100,000)
Year
1.
50,000
40,000
2
40,000
40,000
30,000
40,000
30,000
40,000
Calculate Net Present Value and Actual Rate of return for both the projects.. How will you evaluate each
project using these project evaluation methods?

Image Transcription

b) A construction company has identified the following two mutually exclusive projects. The company used 10% discount rate Cash flows (Project A) ($100,000) Cash flows (Project B) ($100,000) Year 1. 50,000 40,000 2 40,000 40,000 30,000 40,000 30,000 40,000 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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