Question: *Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys. Problem 12-3: Uneven cash flows A
*Complete the problems in an Excel spreadsheet. Be sure to show your work to receive credit; no hard keys.
Problem 12-3: Uneven cash flows
A firm is considering the two following projects with amounts in SAR.
(a) Calculate the NPV for each project assuming a discount rate of 8%.
(b) Explain which project is better and why.
Project A Project B
Cash outflow: (42,000,000) (42,000,000)
Cash Inflows: 7,000,000 23,000,000
9,000,000 18,000,000
18,000,000 9,000,000
22,000,000 6,000,000
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