Projects SS and LL have the cash flows shown below. If a 10% cost of capital...

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Finance

Projects SS and LL have the cash flows shown below. If a10% cost of capital is appropriate for both of them, what are theirNPVs?Â Â
0 1 2 3
SS -700 500 300 100
LL -700 100 300 600
What project or set of projects would be in your capital budgetif SS and LL were independent?

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4.3 Ratings (1008 Votes)

Project SS Net present value is calculated using a financial calculator by inputting the below Press the CF button CF0 700 It is entered with a negative sign since it is a cash outflow Cash flow for each year should be entered Press Enter and down See Answer

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Projects SS and LL have the cash flows shown below. If a10% cost of capital is appropriate for both of them, what are theirNPVs?Â Â
	0	1	2	3
SS	-700	500	300	100
LL	-700	100	300	600