![ROSEMONT OAK PARK EXPECTD USEFUL LIFE OF PROJECT 25 20 25,00,000.00 $ 25,00,000.00 $ INITIAL OUTFLOW 4,00,000.00 $ 5,50,000.0](//img.homeworklib.com/questions/7ec97ee0-0da2-11ea-9b8a-f3ade7716173.png?x-oss-process=image/resize,w_560)
OAK PARK LOCATION'S NPV IS MORE THEN ROSEMONT LOCATION.
THEREFORE SHE SHOULD CHOOSE THE OAK PARK LOCATION.
ROSEMONT OAK PARK EXPECTD USEFUL LIFE OF PROJECT 25 20 25,00,000.00 $ 25,00,000.00 $ INITIAL OUTFLOW 4,00,000.00 $ 5,50,000.00 ANNUAL CASH OUTFLOW OUTFLOW SUM OF PRESENT VALUE FACTOR @7% 11.65 10.59 46,61,433.27 $ 58,26,707.84 $ PV OF ANNUAL CASH OUTFLOW 71,61,433.27 $ 83,26,707.84 $ TOTAL PRESENT VALUE OF OUTFLOW 10,00,000.00 $ 12,00,000.00 $ ANNUAL CASH INFLOW SUM OF PRESENT VALUE FACTOR INFLOWS @7% 11.65 10.59 1,16,53,583.18 $1,27,12,817.09 $ PV OF INFLOWS 44,92,149.91$ 43,86,109.26 $ NET PRESENT VALUE RANKING 1 2