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)

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
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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)

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