Calculate the NPV of given projects

jagguarpaw January 16, 2017 0 Comments

Question: Calculate the NPV of given projects….

Calculate the NPV of Given projects Alpha and Beta.

Consider the following two projects:

Project Year 0

C/F

Year 1

C/F

Year 2

C/F

Year 3

C/F

Year 4

C/F

Year 5

C/F

Year 6

C/F

Year 7

C/F

Discount

Rate

Alpha -79 20 25 35 35 40 N/A N/A 15%
Beta -80 25 25 25 25 25 25 25 15%

The NPV for project alpha is closest to:

  1. $20.21
  2. $16.92
  3. $24.01
  4. $14.41