Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The...

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Finance

Yong Importers, an Asian import company, is evaluating twomutually exclusive projects, A and B. The relevant cash flows foreach project are given in the table below. The cost of capital foruse in evaluating each of these equally risky projects is 10percent. The annualized NPV of Project B is ________.
Project A Project B Initial Investment
$350,000 $425,000
Year Cash Inflows (CF)
1 $140,000 $175,000
2 $165,000 $150,000
3 $190,000 $125,000
4 00000000 $100000
5 00000000 $75,000
6 00000000 $50,000

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Annualized NPV NPV of project present value annuity factor 10 over the project life Calculation of Annualized NPV of projects Year Discount Factor 10 Project A Project B See Answer

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Yong Importers, an Asian import company, is evaluating twomutually exclusive projects, A and B. The relevant cash flows foreach project are given in the table below. The cost of capital foruse in evaluating each of these equally risky projects is 10percent. The annualized NPV of Project B is ________.Project A Project B Initial Investment$350,000 $425,000Year Cash Inflows (CF)1 $140,000 $175,0002 $165,000 $150,0003 $190,000 $125,0004 00000000 $1000005 00000000 $75,0006 00000000 $50,000