Question: ): Evaluate two investment projects using the net present value (NPV) method. Project A requires an initial investment of $20,000,000 and generates cash flows of
): Evaluate two investment projects using the net present value (NPV) method. Project A requires an initial investment of $20,000,000 and generates cash flows of $5,000,000 annually for four years. Project B requires an initial investment of $25,000,000 and generates cash flows of $6,000,000 annually for four years. The discount rate is 10%.
Project | Initial Investment | Cash Flows (Annual) | NPV |
Project A | $20,000,000 | ||
Project B | $25,000,000 |
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