Question: Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the table and indicate whether each is acceptable.
Project A Project B
Initial investment $26,000 $500,000
Year Cash Inflows
1 $4,000 100,000
2 $4,000 120,000
3 4,000 140,000
4 4,000 160,000
5 4,000 180,000
6 4,000 200,000
7 4,000
8 4,000
9 4,000
10 4,000.