Consider the following cash inflows and outflows related to project 1 and project 2 CASH INFLOWS AND OUTFLOWS FOR TWO PROJECTS Project 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Benefits 1000 500 850 650 1500 500 Costs 1200 400 800 300 1000 300 Project 2 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 B...

Using Excel Project 1 Year 1 Year 2 Year 3 Year 4 Year 5 Yea ...

Consider the following cash inflows and outflows related to project 1 and project 2. CASH INFLOWS AND

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Consider the following cash inflows and outflows related to project 1 and project 2.

CASH INFLOWS AND OUTFLOWS FOR TWO PROJECTS
Project 1	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6
Benefits	1000	500	850	650	1500	500
Costs	1200	400	800	300	1000	300


Project 2	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6
Benefits	1000	765	431	104	350	350
Costs	573	388	500	100	139	300

For each project,

Calculate the cash flow in a table.

calculate the NPV assuming 12% discount rate, and determine which of the two projects would you prefer?

Show the detailed calculation with the formula to justify your answer.

Related Book For answer-question

Fundamentals of Engineering Economics

ISBN: 978-0132775427

3rd edition

Authors: Chan S. Park

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Posted Date: Jan 05, 2023 06:20 AM

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Consider the following cash inflows and outflows related to project 1 and project 2. CASH INFLOWS AND

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