Question: A. Compute the NPV statistic for Project U if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus
A.
Compute the NPV statistic for Project U if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Project U | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | $1,400 | $510 | $1,880 | $600 | $460 | $180 |
B.
Compute the NPV for Project K if the appropriate cost of capital is 5 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Project K | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | $11,100 | $5,550 | $6,550 | $6,550 | $5,550 | $11,100 |
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