[See Solution] Consider two mutually exclusive projects with the following cash flows: Project C/F 0 C/F 1 C/F 2 C/F 3 C/F 4 C/F 5 C/F 6 A $(41,215) $12,500
Question: Consider two mutually exclusive projects with the following cash flows:
| Project | C/F 0 | C/F 1 | C/F 2 | C/F 3 | C/F 4 | C/F 5 | C/F 6 |
| A | $(41,215) | $12,500 | $14,000 | $16,500 | $18,000 | 20,000 | N/A |
| B | $(46,775) | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 |
Required: If the discount rate for project A is 16%, then what is the NPV for project A? (4 marks)
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