Purchase Solution

Independent Projects:Decision making using Net Present Value

Not what you're looking for?

Ask Custom Question

Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the table and indicate whether each is acceptable.
Project A Project B
Initial investment $26,000 $500,000
Year Cash Inflows
1 $4,000 100,000
2 $4,000 120,000
3 4,000 140,000
4 4,000 160,000
5 4,000 180,000
6 4,000 200,000
7 4,000
8 4,000
9 4,000
10 4,000.

Purchase this Solution

Solution Summary

The solution shows how to decide whether a project will be accepted or rejected based on Net present Value analysis.

Solution Preview

The attached Excel Worksheet contains the solution to the ...

Solution provided by:
Education
  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
Recent Feedback
  • "Thank you."
  • "thank you Chidi Ngene.. if you have any APA references would be great"
  • "Thank you so much for your help, your explanations were easy to understand and apply!"
  • "are you able to highlight the equations used either on the xlsx or a word doc as to how each graph was formed- overall looks fine i just need help understanding this myself"
  • "Chidi Ngene, M. Sc. Was extremely helpful as without the help and guidance I would have failed, but with the help I passed. I still have a lot to learn and in need of the guidance to understand and learn more on the subject. I would recommend Chidi Ngene and BrainMass to anyone that are in need of help. Thank you!!"
Purchase this Solution


Free BrainMass Quizzes
Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.