Sh.23. ABC company is considering investing in Project Zeta or Project Omega. Project Zeta generates the following cash flows: year “zero” = 321 dollars (outflow); year 1 = 160 dollars (inflow); year 2 = 294 dollars (inflow); year 3 = 386 dollars (inflow); year 4 = 147 dollars (inflow). Project Omega generates the following cash flows: year “zero” = 230 dollars (outflow); year 1 = 120 dollars (inflow); year 2 = 100 dollars (inflow); year 3 = 200 dollars (inflow); year 4 = 120 dollars (inflow). The MARR is 10 %. Using the Present Worth Method, calculate the Net Present Value of the BEST project. (note: round your answer to the nearest cent, and do not include spaces, currency signs, plus or minus signs, or commas)
Sh.23.
ABC company is considering investing in Project Zeta or Project Omega. Project Zeta generates the following cash flows: year “zero” = 321 dollars (outflow); year 1 = 160 dollars (inflow); year 2 = 294 dollars (inflow); year 3 = 386 dollars (inflow); year 4 = 147 dollars (inflow). Project Omega generates the following cash flows: year “zero” = 230 dollars (outflow); year 1 = 120 dollars (inflow); year 2 = 100 dollars (inflow); year 3 = 200 dollars (inflow); year 4 = 120 dollars (inflow). The MARR is 10 %. Using the Present Worth Method, calculate the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images