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    Calculating the NPVs of Given Projects

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    If a company is evaluating two independent projects. The company uses a 13.8 percent discount rate for such projects. Cost and cash flows are shown in the table. What are the NPVs of the two projects?

    Year Project 1 Project 2
    0 ($8,425,375) ($11,368,000)
    1 $3,225,997 $2,112,589
    2 $1,775,882 $3,787,552
    3 $1,375,112 $3,125,650
    4 $1,176,558 $4,115,899
    5 $1,212,645 $4,556,424
    6 $1,582,156
    7 $1,365,882

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    https://brainmass.com/economics/estimation-and-forecasting/calculating-npvs-given-projects-560275

    Solution Summary

    The solution calculates the NPVs of given projects.

    $2.19