Project A cost $6,000 and Project B cost $18,000, there expected net cash inflows are shown on the timeline below and there interest rate is 14 percent. Year Project A Project B Year 0 -$6,000 -$8,000 Year 1 $2,000 $5,600 Year 2 $2,000 $5,600 Year 3 $2,000 $5,600 Year 4 $2,000 $5,600 Year 5 $2,000 $5,600 What is Project Bs net present value (NPV)? Group of answer choices $5,600.00 $1,800.00 $866.16 $1,225.25
Project A cost $6,000 and Project B cost $18,000, there expected net cash inflows are shown on the timeline below and there interest rate is 14 percent. Year Project A Project B Year 0 -$6,000 -$8,000 Year 1 $2,000 $5,600 Year 2 $2,000 $5,600 Year 3 $2,000 $5,600 Year 4 $2,000 $5,600 Year 5 $2,000 $5,600 What is Project Bs net present value (NPV)? Group of answer choices $5,600.00 $1,800.00 $866.16 $1,225.25
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Project A cost $6,000 and Project B cost $18,000, there expected net
Year Project A Project B
Year 0 -$6,000 -$8,000
Year 1 $2,000 $5,600
Year 2 $2,000 $5,600
Year 3 $2,000 $5,600
Year 4 $2,000 $5,600
Year 5 $2,000 $5,600
What is Project Bs
Group of answer choices
$5,600.00
$1,800.00
$866.16
$1,225.25
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