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
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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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
1
2
3
st
4
5
SO
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
Transcribed Image Text: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 1 2 3 st 4 5 SO 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
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