Net present value (NPV) of the project
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Green Grocers is deciding among two mutually exclusive projects. The two projects have the following cash flows: .
Year Project A Cash Flow Project B Cash Flow
0 -$50,000 -$30,000
1 10,000 6,000
2 15,000 12,000
3 40,000 18,000
4 20,000 12,000
The company's weighted average cost of capital is 10 percent (WACC = 10%). What is the net present value (NPV) of the project with the highest internal rate of return (IRR)?
These are your choices
$ 7,090
$ 8,360
$11,450
$12,510
$15,200
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Solution Summary
This provides the steps to calculate the net present value (NPV) of the project with the highest internal rate of return (IRR)
Solution Preview
Green Grocers is deciding among two mutually exclusive projects. The two projects have the following cash flows: .
Year Project A Cash Flow Project B Cash Flow
0 ...
Purchase this Solution
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