Marge Simpson Inc. has following business opportunities with following cash flow information. Assume Marge’s opportunity cost...

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Marge Simpson Inc. has following business opportunities with following cash flow information. Assume Marge’s opportunity cost...

Marge Simpson Inc. has following business opportunities with following cash flow information. Assume Marge’s opportunity cost of capital is 12%.

Year	Project A	Project B
0	−$20,000	−$20,000
1	15,000	2,000
2	15,000	2,500
3	13,000	3,000
4	3,000	50,000

Calculate NPV for both projects.

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Answer 1

Answer #1

F143 fix =SUM(F138:F142) А 136 137 138 139 Project A Cashflows (20,000.00) $ 15,000.00 $ 15,000.00 $ 13,000.00 $ 3,000.00 $ P fax =SUM(F138:F142) А в 136 137 138 Year 139 Project A Cashflows -20000 15000 15000 13000 3000 Project B Cashflows -20000 200

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