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Which of the following is true regarding the calculation of net present value? procent value present value of inflow-present

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Answer #1
7 Statement I is correct
8 Project A
PV of Cash Flows:
Year 1-$100,000*0.90909 $90,909
Year 2-$100,000*0.82645 $82,645
Total of PV of cashFlows $1,73,554
Less Cash outflows $1,50,000
NPV $23,554
9 Project B
PV of Cash Flows:
Year 1-$40,000*0.909090 $36,364
Year 2-$170,000*0.82645 $1,40,497
Total of PV of cashFlows $1,76,860
Less Cash outflows $1,50,000
NPV $26,860
10 Based on NPV Project B is better
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