Net present value for project


Zellers, Inc. is considering two mutually exclusive projects, A and B. Project A cost $75,000 and is expected to generate $48,000 in year one and $45,000 in year two. Project B cost $80,000 and is expected to generate $34,000 in year one, $37,000 in year two, $26,000 in year three, and $25,000 in year four. Zellers, Inc.'s required rate of return for these projects is 10%. The net present value for Project A is:

a. $5,826

b.$6347

c.$18,000

d.$9,458

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Business Management: Net present value for project
Reference No:- TGS072210

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