Question: If NPVs are equal for two projects (cross over NPV), how do you determine which project to go with. The net values gor project A

If NPVs are equal for two projects (cross over NPV), how do you determine which project to go with. The net values gor project A are year0= -100000, year1= 60000, year2= 50000, year3= 40000, year4= 30000, year5= 0. Project B: year0= -110000, year1= 0, year2= 20000, year3= 40000, year4= 60000, year5= 80000. Provide justification for which project you'd recommend

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!