Project A cost $6,000 and Project B cost $18,000, there expected net cash inflows are shown on the timeline below and there interest rate is 14 percent. Year            Project A           Project B Year 0           -$6,000            -$8,000 Year 1            $2,000              $5,600 Year 2            $2,000              $5,600 Year 3            $2,000              $5,600 Year 4            $2,000              $5,600 Year 5            $2,000              $5,600 What is Project Bs net present value (NPV)? Group of answer choices $5,600.00 $1,800.00 $866.16 $1,225.25

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...
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Project A cost $6,000 and Project B cost $18,000, there expected net cash inflows are shown on the timeline below and there interest rate is 14 percent.
Year            Project A           Project B
Year 0           -$6,000            -$8,000
Year 1            $2,000              $5,600
Year 2            $2,000              $5,600
Year 3            $2,000              $5,600
Year 4            $2,000              $5,600
Year 5            $2,000              $5,600

What is Project Bs net present value (NPV)?

Group of answer choices
$5,600.00
$1,800.00
$866.16
$1,225.25
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