Question: QUESTION 17 AB Lean has identified two mutually exclusive projects with the following cash flows. Year 0 1 2 3 4 5 Cash Flow Project

QUESTION 17

AB Lean has identified two mutually exclusive projects with the following cash flows.

Year 0 1 2 3 4 5

Cash Flow Project A -52,000.00 25,000.00 17,000.00 14,000.00 12,000.00 9,000.00

Cash Flow Project B -52,000.00 17,800.00 17,000.00 16,000.00 17,000.00 22,000.00

The company requires a 12.5% rate of return from projects of this risk.

What is the NPV of project A?

  1. a.417.37
  2. b.1,624.90
  3. c.972.57
  4. d.5,180.35
  5. e.1,395.64
  6. f.5,972.87

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