>>Comparing Projects with unequal lives using NPV infinity Question: Select one best project out of...
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>>Comparing Projects with unequal lives using NPV infinity
Question: Select one best project out of the following two projects. Keep in mind that the projects have unequal lives. Use NPV infinity formula to compute and compare the two projects:
| Year | Project A | Project B |
| 0 | 100,000 | 100,000 |
| 1 | 50,000 | 30,000 |
| 2 | 80,000 | 40,000 |
| 3 | - | 50,000 |
Cost of capital=5%
Guidelines:
-Solve the question by using NPV infinity formula:
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