- +1-530-264-8006
- info@tutorsglobe.com

Calculate the npv and pi

You are considering two independent projects A a project B. The intitial cash outlay associated with project A is $50,000 and the initial cash outlay associated with project B is $70,000. The required rate of return on both projects is 12 percent. The expected annual free cash flows from each project are as follows:

Year Project A Project B

0 ($50,000) ($70,000)

1 12,000 13,000

2 12,000 13,000

3 12,000 13,000

4 12,000 13,000

5 12,000 13,000

6 12,000 13,000

Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted.

Expected delivery within 24 Hoursrs

18,76,764

Questions

Asked

21,311

Experts

9,67,568

Questions

Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment2015 © Tutors Globe. All rights reserved.

## Q : What is the present value index for each proposal

He net present value has been computed for Proposals A and B.what is the present value index for each proposal.