7. Based on NPV which project would you ассept?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:11:52
Investment Appraisal (Year 2 Column 2...
£393,460
7. Based on NPV which project would you
ассept?
Net Cash F
Net Cash F Net Cash
F
Project 2
(110,000) (105,000)
35,000
35,000
Project 3
(116,000)
40,000
40,000
40,000
40,000
40,000
84,000
Project 1
Year 0
Year 1
25,000
Year 2
20,000
Year 3
35,000
35,000
Year 4
35,000
35,000
70,000
45,000
Year 5
35,000
50,000
Project 1
Project 2
Project 3
8. When calculating NPV will using a higher
discount factor lead to ...?
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