Determine the adjusted npv for each project using the


Consider 2 projects, X and Y:
Project Cost Life(years) Annual after-tax cash inflow
X 75000 10 14000
Y 40000 15 7000

The company's cost of capital is 10%

1. Determine the adjusted NPV for each project, using the replacement chain procedure

2. Determine the equivalent annual annuity for each project

3. Which project should be taken?

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Accounting Basics: Determine the adjusted npv for each project using the
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