Question: Answer please I will give thumbs up! Calculate the Net Present Value (NPV) by applying the valuation techniques for the capital budget of the following
Answer please I will give thumbs up!
Calculate the Net Present Value (NPV) by applying the valuation techniques for the capital budget of the following two projects that a company is evaluating. The assumed rate of return is 12% per year, computed semi-annually, for both projects. Assume an initial investment of $ 150,000 for A and $ 170,000 for B. Then answer: What project should the firm take into consideration, assuming that both projects are "Mutually Exclusive"? Explain the reason for your answer.
Cash Flow
Year Proyect A Proyect B
1 $40,000 $40,000
2 $37,000 $40,000
3 $32,000 $40,000
4 $27,000 $40,000
5 $23,000 $40,000
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