Question: Its a request to solve all, i shall be very thanksful 1) Investment is 4000. Cash inflows are follows; Year-1; Project X= 1000; Project Y=
Its a request to solve all, i shall be very thanksful
1)
Investment is 4000. Cash inflows are follows; Year-1; Project X= 1000; Project Y= 2000; Year-2; Project X= 1000; Project Y= 1500; Year-3; Project X= 1000; Project Y= 1000; Year-4; Project X= 1000; Project Y= 500; Year-5; Project X= 2000; Project Y= 0. If the cost of Capital is 11%, what is the NPV for both the projects, who shows the overconfidence bias?
Select one:
a. None
b. 249.35; 89.79; Project X shows over-confidence bias
c. 289.35; 79.79; Project X shows over-confidence bias
d. 389.35; 99.79; Project X shows over-confidence bias
e. 219.35; 279.79; Project Y shows over-confidence bias
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