Question: 2. The table below presents the cash-flows associated to projects A and B: Project Year 0 1 2 3 4 A Investment 3,100 Cash-flow 1,800
2. The table below presents the cash-flows associated to projects A and B:
| Project | Year | 0 | 1 | 2 | 3 | 4 |
| A | Investment | 3,100 |
|
|
|
|
|
| Cash-flow |
| 1,800 | 2,300 | 1,200 | 900 |
| B | Investment | 1,500 |
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|
|
|
|
| Cash-flow |
| 400 | 1,300 | 700 | 4,000 |
Compute the NPV and the discounted payback period at an opportunity cost of capital of 10%.
| Project | NPV | DPAYBACK |
| A |
|
|
| B |
|
|
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