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You are considering two projects with the following cash flows: Which one has a higher present...

You are considering two projects with the following cash flows:

Which one has a higher present value with a 5% discount rate? Computer PV for both projects)

*I used the cash flow option on my financial calculator. I got 27,589.17 for project X, and 27,373.06 for project Y.. Am I correct?? *

Project x Project y
Year 1 8500 7000
Year 2 8000 7500
Year 3 7500 8000
Year 4 7000 8500
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Answer #1

Yes, your answers are absolutely correct. I checked them while calculating the same in Excel, which is shown in snapshot below.

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