Question

Calculate the Net Present Value (NPV) applying the valuation techniques for the budget of capital of...

Calculate the Net Present Value (NPV) applying the valuation techniques for the budget of
capital of the following two projects, assuming a rate of return of 17% per year,
computed annually. Assume an initial investment of $ 33,000 for A and $ 40,000 for B. Then

Year  Project A      Project B

1    $ 15,000 $        11,000
2    $ 12,000 $        11,000
3    $ 10,000 $        11,000
4    $ 10,000 $        11,000
5    $  9,000          11,000

NPV

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