Question
ABC Corp. has the following mutually exclusive projects that both have a required return of 15.3...
ABC Corp. has the following mutually exclusive projects that both have a required return of 15.3 %:
| Year | Project A | Project B |
|---|---|---|
| 0 | $-14,511 | $-9,358 |
| 1 | 9,672 | 4,238 |
| 2 | 7,765 | 4,241 |
| 3 | 2,185 | 6,791 |
What is the NPV of project A? (Round answer to 2 decimal places, do not round intermediate calculations)
Homework Answers
Answer #1
NPV of project A= $1,143.98
NPV of project B= $1,938.20
Calculation as follows:
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