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chaptee 11 question 5

please determine NOV of both projects

Help kadused diacount rates and risk asses) The G Wolle Corporation is examining two capital budgeting projects with 5-year lives. The first project A, is a replacement project the second project is a project unrelated to current operations The G Wolfe Corporation uses the risk-adjusted discount rate method and groups projects according to purpose, and then it uses a required rate of return or discount rate that has been preassigned to that purpose or risk ass. The expected cash flows for these projects are given in the popup window. The purpose is classes and preassigned required rates of return are shown in the popup window. Determine each project's risk adjusted not present value What is the sk-adjusted NPV of project A? Round to the nearest cent) Clear all (Click on the following icon in order to copy its contents into a spreadsheet) are shown in the PROJECT A $260.000 PROJECT B - $400,000 adju Initial investment Cash inflows Year 1 Year 2 Year 3 Year 4 Year 5 ther $140.000 30,000 40.000 90,000 130,000 $150.000 150,000 150,000 150,000 150,000 Print Done Clear pre shown (Click on the following icon in order to copy its contents into a spreadsheet) PURPOSE Replacement decision Modification or expansion of existing product line Project unrelated to current operations Research and development operations REQUIRED RATE OF RETURN 9% 15% 18% 20% Print Done

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