You are comparing two mutually exclusive projects. The first provides after-tax cash flows of $50,000 per...

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Finance

You are comparing two mutually exclusive projects. The firstprovides after-tax cash flows of $50,000 per year for 5 years andcosts $100,000 to pursue. The second provides after-tax cash flowsof $25,000 per year for 25 years, but those cash flows do not beginuntil 4 years from now. This project costs $30,000 to pursue. Bothprojects have a required return of 12%. Select the option belowwith the correct NPVs and the correct project choice.
NPV1=$80,238.81; NPV2=$94,611.42; choose project 2
NPV1=$80,238.81; NPV2=$166,078.48; choose project 2
NPV1=$71,641.79; NPV2=$65,724.88; choose project 1
None of the above are correct.

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You are comparing two mutually exclusive projects. The firstprovides after-tax cash flows of $50,000 per year for 5 years andcosts $100,000 to pursue. The second provides after-tax cash flowsof $25,000 per year for 25 years, but those cash flows do not beginuntil 4 years from now. This project costs $30,000 to pursue. Bothprojects have a required return of 12%. Select the option belowwith the correct NPVs and the correct project choice.NPV1=$80,238.81; NPV2=$94,611.42; choose project 2NPV1=$80,238.81; NPV2=$166,078.48; choose project 2NPV1=$71,641.79; NPV2=$65,724.88; choose project 1None of the above are correct.