Project A cost $6,000 and Project B cost $18,000, there expected net cash inflows are shown on the timeline below and there interest rate is 14 percent. Year Project A Project B Year 0 -$6,000 -$8,000 Year 1 $2,000 $5,600 Year 2 $2,000 $5,600 Year 3 $2,000 $5,600 Year 4 $2,000 $5,600 Year 5 $2,000 $5,600 What is Project Bs net present value (NPV)? Group of answer choices $5,600.00 $1,800.00 $866.16 $1,225.25

Project A cost $6,000 and Project B cost $18,000, there expected net cash inflows are shown on the timeline below and there interest rate is 14 percent. Year Project A Project B Year 0 -$6,000 -$8,000 Year 1 $2,000 $5,600 Year 2 $2,000 $5,600 Year 3 $2,000 $5,600 Year 4 $2,000 $5,600 Year 5 $2,000 $5,600 What is Project Bs net present value (NPV)? Group of answer choices $5,600.00 $1,800.00 $866.16 $1,225.25

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...

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