projects calculate the net present value and suggest which of the two projects should be accepted assuming a discount rate of 10%.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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The profits beföre depreciation andl after taxes (cash
flow) are as follöws:
Years
1
2
3
4
Project X ()| 5,000 10,000| 10,000 3,000 2,000
Project Y () 20,000 10,000 5,000 3,000 2,000
Transcribed Image Text:The profits beföre depreciation andl after taxes (cash flow) are as follöws: Years 1 2 3 4 Project X ()| 5,000 10,000| 10,000 3,000 2,000 Project Y () 20,000 10,000 5,000 3,000 2,000
Example 8: From the following information of the two
projects calculate the net present value and suggest
which of the two projects should be accepted assuming
a discount rate of 10%.
Project X
Initial Investment 20,000
5 years
71,000
Project Y
730,000
5 years
72,000
Estimated Life
Scrap Value
Transcribed Image Text:Example 8: From the following information of the two projects calculate the net present value and suggest which of the two projects should be accepted assuming a discount rate of 10%. Project X Initial Investment 20,000 5 years 71,000 Project Y 730,000 5 years 72,000 Estimated Life Scrap Value
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