Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. consider the following two? projects: project year

Consider the following two? projects: Project Year 0 ?C/F Year 1 ?C/F Year 2 ?C/F Year...

Free

90.2K

Verified Solution

Question

Finance

Consider the following two? projects: Project Year 0 ?C/F Year 1?C/F Year 2 ?C/F Year 3 ?C/F Year 4 ?C/F Year 5 ?C/F Year 6 ?C/FYear 7 ?C/F Discount Rate Alpha minus79 20 25 30 35 40 ?N/A ?N/A16?% Beta minus80 25 25 25 25 25 25 25 17?% The net present value?(NPV) for project beta is closest? to:

Answer & Explanation Solved by verified expert
3.7 Ratings (556 Votes)

i ii iii iv=ii*iii
year Beta cash flow PVIF @ 17% Present value
0 -80     1.0000       (80.00)
1 25     0.8547         21.37
2 25     0.7305         18.26
3 25     0.6244         15.61
4 25     0.5337         13.34
5 25     0.4561         11.40
6 25     0.3898           9.75
7 25     0.3332           8.33
        18.06
therefore NPV of Beta =         18.06

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Consider the following two? projects: Project Year 0 ?C/F Year 1?C/F Year 2 ?C/F Year 3 ?C/F Year 4 ?C/F Year 5 ?C/F Year 6 ?C/FYear 7 ?C/F Discount Rate Alpha minus79 20 25 30 35 40 ?N/A ?N/A16?% Beta minus80 25 25 25 25 25 25 25 17?% The net present value?(NPV) for project beta is closest? to:

Other questions asked by students

Q

Madame Pickney has a rather extensive art collection and the overall value of her collection...

Algebra
Q

Bacteria can carry out gluconeogenesis using components of the citric acid cycle or amino acids, but...

Biology
Q

An 85.4-kg climber is scaling the vertical wall of a mountain. His safety rope is made...

Physics
Q

In each chapter of this book, we use a database for a fictitious company, Performance Lawn...

General Management
Q

Find the angle of the sector below if the area of the sector is 36T...

Geometry
Q

Solve O 1 1x 7x 10 2 2x 4x Which proportion is equivalent to the...

Algebra
Q

20 The angle of elevation of the sun is 33 Find the length 1 of...

Algebra
Q

Welcome to Jefferson in Unit 5-18FLUC2-ACCX-111-1 Begin: Unit 5 - Chapter 6 Qu Take...

Accounting
Q

the december bank statement and cash t account for Steward Company follow prepare a bank...

Accounting
Q

Brief Exercise G-10 Crane Company is considering an investment that will return a lump sum...

Accounting
Q

Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution...

Accounting
Q

Mauro Products distributes a single product, a woven basket whose selling price is sh.15 and...

Accounting