Rhode Island Technology weighted average cost of capital of 8.44 percent and is evaluating two...
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Rhode Island Technology weighted average cost of capital of 8.44 percent and is evaluating two projects A and B Project A involves an initial Investment of $36.000,00 and an expected cash flow of 564,000.00 in 4 years. Project is considered more risky than an average risk project at Rhode Island Technology that the appropriate discount rate for its 5.19 percentage points different than the discount rate used for an average risk project at de kland Technology. The internal rate of return for project 10,64 percent. Project involves an initial investment of 570,100.00 and an expected cash flow of 5119.400.00 in 5 years Project is considered less risky than an average-risk project at Rhode Island Technology, such that the appropriate discount rate for its 100 percentage points different than the discount rate used for an average-risk project at Rhode Island Technology. The internal rate of return for project is 2.79 percent. What is equals the NPV of project A plus the NPV of project B? Selected Answers one Given 551459.93 plus or minus Sto) Answers: 526266.76 plus or minus $16) 519809.39 (plus or minus 510) 515690 69 (plus or minus 510) None of the above is within 510 of the correct
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