Virus stopper inc a supplier of computer safeguard systems


Virus Stopper Inc., a supplier of computer safeguard systems, uses a cost of capital of 11 percent to evaluate average-risk projects, and it adds or subtracts 2 percentage points to evaluate projects of more or less risk. Currently, two mutually exclusive projects are under consideration. Both have a cost of $ 358 and will last 4 years. Project A, a riskier-than-average project, will produce annual end of year cash flows of $ 84 . Project B, of less than average risk, will produce cash flows of $ 291 at the end of Years 3 and 4 only. To the nearest .01, list the NPV of the higher NPV project. Note, if the NPV is negative, place a - sign in front of your answer. Do not use the $ symbol.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Virus stopper inc a supplier of computer safeguard systems
Reference No:- TGS02686497

Expected delivery within 24 Hours