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problem: Draconian Measures, Inc., is estimating two independent projects. The company uses a 13.8% discount rate for such projects. Cost & Cash flows are shown in the following table. find out the NPVs of the two projects?

Year

Cash flows

Project 1

Project 2

0

 mce_markernbsp;      (8,425,375)

 $ (11,368,000)

1

 mce_markernbsp;         3,225,997

 $ 2,112,589

2

 mce_markernbsp;         1,775,882

 $ 3,787,552

3

 mce_markernbsp;         1,375,112

 $ 3,125,650

4

 mce_markernbsp;         1,176,558

 mce_markernbsp; 4,115,899

5

 mce_markernbsp;         1,212,645

 mce_markernbsp; 4,556,424

6

 mce_markernbsp;         1,582,156

 

7

 mce_markernbsp;         1,365,882

 

Basic Finance, Finance

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  • Reference No.:- M918640

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