You are a financial manager, and your firm is considering the following two projects: Project A:...

  

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You are a financial manager, and your firm is considering the following two projects: Project A: to 2 1 3 4 5 6 7 8 10 9 CF -10,000 -55,000 155.000 125,000 -119,000 113,500 201,500 123,000 -119,000 54,000 Project B: 0 t CF 1 95,000 2 3 5 6 7 10 8 9 112,000 155,000 -125,000 119,000 -153,000 255,000 -113,000 139,000 39,000 The cost of capital (discount rate) for both projects is 3.85% per year. Based on the given information, please calculate present value of the cash flow for both projects. Which project has higher present value? Please show all the calculations by which you came up with the final answer. (8 Points) You are a financial manager, and your firm is considering the following two projects: Project A: to 2 1 3 4 5 6 7 8 10 9 CF -10,000 -55,000 155.000 125,000 -119,000 113,500 201,500 123,000 -119,000 54,000 Project B: 0 t CF 1 95,000 2 3 5 6 7 10 8 9 112,000 155,000 -125,000 119,000 -153,000 255,000 -113,000 139,000 39,000 The cost of capital (discount rate) for both projects is 3.85% per year. Based on the given information, please calculate present value of the cash flow for both projects. Which project has higher present value? Please show all the calculations by which you came up with the final answer. (8 Points)

Answer rating: 100% (QA)

Here are the calculations for the present value of each project Project A Year 0 5500... View the full answer