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    Two additional mutually exclusive projects

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    Caledonia is considering two additional mutually exclusive projects. The cash flows associ­ated with these projects are as follows:
    ========================================================
    YEAR PROJECT A PROJECT B
    -------------------------------------------------------------------------
0 -$100,000 -$100,000
    1 32,000 0
    2 32,000 0
    3 32,000 0
    4 32,000 0
    5 32,000 $200,000
    =========================================================
    The required rate of return on these projects is 11 percent.

    b. What is each project's net present value?

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    https://brainmass.com/business/discounted-cash-flows-model/caledonia-is-considering-two-additional-mutually-exclusive-projects-npv-of-each-240117

    Solution Summary

    The solution examines two additional mutually exclusive projects for Caledonia. Each project's net present value is examined.

    $2.19