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ABC co need to undertake the project cost of $225,000. There two project are in view project 1 has 6 years life and generate cashflows $70,000 project 2 has 4 years life and generate cashflows $98,000. Cost of capital is12%

ABC co need to undertake the project cost of $225,000. There two project are in view project 1 has 6 years life and generate cashflows $70,000 project 2 has 4 years life and generate cashflows $98,000. Cost of capital is12% for both projects. Compute the net present value.


Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...

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Macroeconomics

Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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Posted Date: May 06, 2013 05:17:31
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