A financial analyst has just calculated the NPV of two mutually exclusive projects. Project M has an NPV of $11,500 while Project N has an NPV of $19,000. The cost of capital is 10% and project M has a three-year cash flow period while project N has a six-year cash flow period. Obviously, if ranked by NPV, N is preferable to M, but projects need to be leveled up on an annual basis before a final decision can be reached. 

(a) Calculate ANPV for each project. 

Show the formulas and calculations please. No shortcuts perfect answers.

Answer rating: 100% (QA)

ANPV Annualized Net Present Value is a measure of the equivalent annual cash inflows gene... View the full answer