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    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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    https://brainmass.com/business/capital-budgeting/net-present-value-npv-of-the-project-84319

    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 ...

    Solution Summary

    This provides the steps to calculate the net present value (NPV) of the project with the highest internal rate of return (IRR)

    $2.19

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