4. Here is the cash flows for Project A and Project B. Calculate the Net Present Values of Project A and Project B by using a discount rate of 40%. Year O 1 2 3 4 5 6 -400.000 30.000 110.000 400.000 100.000 130.000 30.000 Project A -400.000 -400.000 21.429 -378.571 56.122 -322.449 145.773 -176.676 26.031 -150.646 24.171 -126.474 3.984 -122.490 -400.000 300.000 250.000 180.000 20.000 40.000 10.000 Project B -400.000 214.286 127.551 65.598 5.206 7.437 1.328 -400.000 -185.714 -58.163 7.434 12.641 20.078 21.406

4. Here is the cash flows for Project A and Project B. Calculate the Net Present Values of Project A and Project B by using a discount rate of 40%. Year O 1 2 3 4 5 6 -400.000 30.000 110.000 400.000 100.000 130.000 30.000 Project A -400.000 -400.000 21.429 -378.571 56.122 -322.449 145.773 -176.676 26.031 -150.646 24.171 -126.474 3.984 -122.490 -400.000 300.000 250.000 180.000 20.000 40.000 10.000 Project B -400.000 214.286 127.551 65.598 5.206 7.437 1.328 -400.000 -185.714 -58.163 7.434 12.641 20.078 21.406

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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