Mr tan is considering 2 potential investment projects that have
similar capital requirements:
Year 0
year 1
year 2
year 3
year 4
project A
4,000,000
1,600,000
1,800,000
2,000,000
2,100,000
Project B
4,200,000
500,000
1,700,000
1,900,000
2,000,000
For project A,the company cost of capital is 14%.For project
B,assessed as the riskier project of the two.,a risk adjusted cost
of capital of 15% is considered appropriate.
1) calculate the NPV of the 2 projects and assess the projects
using the investment...