A company is evaluating two projects, A and B. The company's cost of capital has been determined to be % and the projects have the following investments and cash flow. Project A 100,000.00 40,000.00 50,000.00 20,000.00 20,000.00 1. What is the net present value of Project A? A. P 9,637.75 B. P 13,725.40 2. What is the net present value of Project B? B. P 32,751.19 tial Investment sh Flow 1 23 2 3 4 A. P 18,365.24 C.P 20,216.84 C. P 59,992.84 Project B 90,000.00 67,500.00 78,750.00 20,000.00 20,000.00 D. P 56,800.00 D. P 86,250.00
A company is evaluating two projects, A and B. The company's cost of capital has been determined to be % and the projects have the following investments and cash flow. Project A 100,000.00 40,000.00 50,000.00 20,000.00 20,000.00 1. What is the net present value of Project A? A. P 9,637.75 B. P 13,725.40 2. What is the net present value of Project B? B. P 32,751.19 tial Investment sh Flow 1 23 2 3 4 A. P 18,365.24 C.P 20,216.84 C. P 59,992.84 Project B 90,000.00 67,500.00 78,750.00 20,000.00 20,000.00 D. P 56,800.00 D. P 86,250.00
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
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![1. A company is evaluating two projects, A and B. The company's cost of capital has been determined to be
12% and the projects have the following investments and cash flow.
Initial Investment
Cash Flow
1
2
3
4
1. What is the net present value of Project A?
B. P 13,725.40
A. P 9,637.75
Project A
100,000.00
40,000.00
50,000.00
20,000.00
20,000.00
2. What is the net present value of Project B?
A. P 18,365.24
B. P 32,751.19
C.P 20,216.84
C. P 59,992.84
Project B
90,000.00
67,500.00
78,750.00
20,000.00
20,000.00
D. P 56,800.00
D. P 86,250.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fef09cd40-dd38-4c4e-aa50-9ded496e8fca%2F0dae534e-207b-4031-be9b-b8989ec89d7f%2Fpftkgm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. A company is evaluating two projects, A and B. The company's cost of capital has been determined to be
12% and the projects have the following investments and cash flow.
Initial Investment
Cash Flow
1
2
3
4
1. What is the net present value of Project A?
B. P 13,725.40
A. P 9,637.75
Project A
100,000.00
40,000.00
50,000.00
20,000.00
20,000.00
2. What is the net present value of Project B?
A. P 18,365.24
B. P 32,751.19
C.P 20,216.84
C. P 59,992.84
Project B
90,000.00
67,500.00
78,750.00
20,000.00
20,000.00
D. P 56,800.00
D. P 86,250.00
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