Consider the following cash flows from two mutually exclusive projects of two types of vehicles to service UBER. Assume a 10% discount rate

QUESTIONS

-What is the discounted recovery period of Mini SUV?________________

-What is the discounted recovery period of Full SUV?_________________

-What is the net present value (VPN) of the Mini SUV project?_________________

-What is the net present value (VPN) of the Full SUV project?__________________

-Based on the results obtained, which project would you recommend?_______________

ANSWERS: Chose one answer for each question

CHOUSE

answers:

-$112603.31

-Full SUV

-MINI SUV

-$13140.40

-1.72 years or 1 year 9 months

-2.72 years or 2 years 9 months

-1.35 years or 1 year 4 monts

-2.35 years or 2 years 4 months

Ao Mini SUV Full SUV 0 -$495,000 -$960,000 1 $352,000 $385,000 2 $198,000 $464,000 3 $165,000 $319,000 [Escoger ] $112,603.31 Full SUV Mini SUV $13,140.50 1.72 aos o un ao 9 meses 2.72 aos o dos aos 9 meses 1.35 aos o un ao 4 meses 2.35 aos o dos aos 4 meses