In: Finance
Years | Project A | Project B |
Year 1 CashFlow | 316,000.00 | 200,000.00 |
Year 2 CashFlow | 350,000.00 | 200,000.00 |
Year 3 CashFlow | (20,000.00) | (15,000.00) |
Year 4 CashFlow | 280,000.00 | 390,000.00 |
The cost of capital for Project A is 13% and the cost of capital
for project B is 15%.
Calculate the following;
Net Present value = -$211,737.20
Answer to Part e.
Management should not accept any the project as both the project
has negative NPV and are having discounted payback period of 0
years