Question: Net Cash Flow Year Project A Project B 0 -$8,000,000 -$10,000,000 1 $1,600,000 $3,900,000 2 $1,850,000 $3,700,000 3 $2,150,000 $3,400,000 4 $2,400,000 $900,000 5 $2,600,000
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| Net Cash Flow | |
| Year | Project A | Project B |
| 0 | -$8,000,000 | -$10,000,000 |
| 1 | $1,600,000 | $3,900,000 |
| 2 | $1,850,000 | $3,700,000 |
| 3 | $2,150,000 | $3,400,000 |
| 4 | $2,400,000 | $900,000 |
| 5 | $2,600,000 | $300,000 |
| 6 | $2,800,000 | $0 |
| Calculate the net present value for each project. if discount rate is 6.13%. Use excel NPV function and explain all inputs.
|
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