Question: A project manager has two projects, Projects A and B, all of which will cost $6.79 million immediately, all have a cost of capital of
A project manager has two projects, Projects A and B, all of which will cost $6.79 million immediately, all have a cost of capital of 19.0%, and all have life spans of 5 years. Project A will generate annual cash inflows of $3.25 million for the first two years and $2.55 million for the remaining three. Project B will generate annual cash inflows of $1.33 million for the first two years and $3.15 million for the last three. a) What is the NPV on Project ApS example, use 1000, and don't use 1,000) (Round to 2 decimal places, and don't insert comma to your answer. For What is the NPV on Project B? $ use 1000, and don't use 1,000) (Round to 2 decimal places, and don't insert comma to your answer. For example, b) The decision for Project A should be to: (No answer given) The decision for Project B should be to: (No answer given)
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