Question: Detail answer please~ Question 3 (9 Marks) Health Lab is evaluating the following two mutually exclusive risk management projects: Year Cash Flow (Project x) Cash
Detail answer please~
Question 3 (9 Marks) Health Lab is evaluating the following two mutually exclusive risk management projects: Year Cash Flow (Project x) Cash Flow (Project Y) $ $ 0 - 8,100,000 - 8,100,000 1,125,000 810,000 2 1,575,000 1,440,000 2,070,000 2,475,000 4 2,610,000 3,375,000 5 2,970,000 2,250,000 1 If the market interest rate is 6%, what is the Net Present Value (NPV) for each of these projects: Project X and Project Y? As Risk Manager of Health Lab, which project will you choose if you apply the NPV decision rule? Briefly explain your answers and show all your calculations
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