The following are the net cash flow estimates (in thousands of dollars) of the two (2) proposed projects, you are planning to invest in. Expected Net Cash Flow Year Restaurant & Bar Hardware $M $M 0 (200) (200) 1 10 70 2 60 50 3 100 40 4 120 80 5 150 100 Required: 1. Which project should be accepted if they are independent and why? 2. Which project should be accepted if they are mutually exclusive and why? 3. Would the Net Present Value (NPV) change if the cost of capital changes?
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The following are the net cash flow estimates (in thousands of dollars) of the two (2) proposed projects, you are planning to invest in. Expected Net Cash Flow Year Restaurant & Bar Hardware $M $M 0 (200) (200) 1 10 70 2 60 50 3 100 40 4 120 80 5 150 100 Required:
1. Which project should be accepted if they are independent and why? 2. Which project should be accepted if they are mutually exclusive and why? 3. Would the |
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