The required rate of return on these projects is 11, Ask an Expert

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Q1) Caledonia is considering two additional mutually exclusive projects. The cash flows associated with these projects are as follows:

YEAR	PROJECT A	PROJECT B
0 -	$100,000	$100,000
1	32,000	0
2	32,000	0
3	32,000	0
4	32,000	0
5	32,000	$200,000

The required rate of return on these projects is 11 percent.

What is each project's net present value?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M918126

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