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

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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:

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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

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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:

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

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90.2K

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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:

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