A company has two projects that are under evaluation. The project investment costs, annual projected cash...

 

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A company has two projects that are under evaluation. The project investment costs, annual projected cash flows, and required rates of return are shown below: Project 1 Project 2 Rate of Return:0.065 Project Cost: -$1,397,654-$1,619,835 Year 1 Year 2 Year 3 Year 4 0.065 Year 5 $245,367 $267,345 $302,542 $343,563 $316,543 $367,834 $367,843 $432,098 $450,425 $589,435 1. Compute the NPV for each project using Microsoft Excel NPV's function. Be sure to show your work. 2. Which project should be pursued? Why? A company has two projects that are under evaluation. The project investment costs, annual projected cash flows, and required rates of return are shown below: Project 1 Project 2 Rate of Return:0.065 Project Cost: -$1,397,654-$1,619,835 Year 1 Year 2 Year 3 Year 4 0.065 Year 5 $245,367 $267,345 $302,542 $343,563 $316,543 $367,834 $367,843 $432,098 $450,425 $589,435 1. Compute the NPV for each project using Microsoft Excel NPV's function. Be sure to show your work. 2. Which project should be pursued? Why?

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To compute the Net Present Value NPV for each project using Microsoft Excels NPV function we need to ... View the full answer