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    Capital Budgeting - NPV Function

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    Projects SS and LL have the following cash flows:

    WACC = r = 10%
    0 1 2 3
    SS -700 500 300 100
    LL -700 100 300 600

    If a 10% cost of capital is appropriate for both of them, what are their NPVs?

    See attached.

    © BrainMass Inc. brainmass.com October 10, 2019, 7:37 am ad1c9bdddf
    https://brainmass.com/business/net-present-value/capital-budgeting-npv-function-588567

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    Projects SS and LL have the following cash flows:

    WACC = r = 10%
    0 1 2 3
    SS -700 500 300 100
    LL -700 100 300 600

    If a 10% cost of capital is appropriate for both of them, what are their NPVs?

    NPV
    SS ...

    Solution Summary

    Excel file attached contains the solution for NPV computations for projects SS and LL.

    $2.19