1 what are the projects net present values assuming the


Division Alex is considering two facility investment projects, each of which requires an up-front expenditure of $15 million. Alex estimates that the investments will produce the following net cash flows:

Year
1 2 3
Project Jared
$6,000,000.00 $10,000,000.00 $19,000,000.00
Project TJ

$18,000,000.00 $10,000,000.00 $4,000,000.00

1. What are the projects' net present values, assuming the cost of capital is 5%?

2. What are the projects' net present values, assuming the cost of capital is 10%?

3. What are the projects' net present values, assuming the cost of capital is 15%?

(Use Excel)

Solution Preview :

Prepared by a verified Expert
Finance Basics: 1 what are the projects net present values assuming the
Reference No:- TGS01549299

Now Priced at $15 (50% Discount)

Recommended (97%)

Rated (4.9/5)