Question: PE 26-5A Net present value-unequal lives OBJ. 4 Project A requires an original investment of $32,600. The project will yield cash flows of $7,000 per
PE 26-5A Net present value-unequal lives OBJ. 4 Project A requires an original investment of $32,600. The project will yield cash flows of $7,000 per year for nine years. Project B has a calculated net present value of $3,500 over a six-year life. Project A could be sold at the end of six years for a price of $15,000. (a) Determine the net present value of Project A over a six-year life, with residual value, assuming a minimum rate of return of 12%. (b) Which project provides the greatest net present value
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