Project A has $100,000 investment and will produce a return of $80,000 for end of years 1 and 2, respectively. Project B has $100,000 investment and will produce a return of $90,000 and $70,000 for end of years 1 and 2, respectively. = 0.2 (or 20%). Which project, if either, should the company invest in if only $100,000 is available for investment? Use the Net Present Worth (NPW) approach to justify your answer, you may upload a file and also type into the answer box. Please give answers to nearest dollar as requested, and project ID (A or B) where requested. What is NPW of Project A? What is NPW of Project B? Based upon your resulting calculations, which project should you choose, Project A or B?
Project A has $100,000 investment and will produce a return of $80,000 for end of years 1 and 2, respectively. Project B has $100,000 investment and will produce a return of $90,000 and $70,000 for end of years 1 and 2, respectively. = 0.2 (or 20%). Which project, if either, should the company invest in if only $100,000 is available for investment? Use the Net Present Worth (NPW) approach to justify your answer, you may upload a file and also type into the answer box. Please give answers to nearest dollar as requested, and project ID (A or B) where requested. What is NPW of Project A? What is NPW of Project B? Based upon your resulting calculations, which project should you choose, Project A or B?
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 17PROB
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Transcribed Image Text:Question 13 options:
Project A has $100,000 investment and will produce a return of $80,000 for end of years 1 and 2, respectively.
Project B has $100,000 investment and will produce a return of $90,000 and $70,000 for end of years 1 and 2, respectively.
i = 0.2 (or 20%).
Which project, if either, should the company invest in if only $100,000 is available for investment? Use the Net Present Worth
(NPW) approach to justify your answer, you may upload a file and also type into the answer box.
Please give answers to nearest dollar as requested, and project ID (A or B) where requested.
What is NPW of Project A?
What is NPW of Project B?
Based upon your resulting calculations, which project should you choose, Project A or B?
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