Question: Week 5 CNOW Assignment Part Five APPLY THE CONCEPTS: Net present value and Present value index Krause Corporation is looking to invest in Project

Week 5 CNOW Assignment Part Five APPLY THE CONCEPTS: Net present valueand Present value index Krause Corporation is looking to invest in Project

Week 5 CNOW Assignment Part Five APPLY THE CONCEPTS: Net present value and Present value index Krause Corporation is looking to invest in Project A or Project B. The data sumending each project is provided below. Krause's cost of capital is 10% Project A This project requires an initial investment of $167,500. The project will have a life of 3 years. Annual revenues associated with the project will be $130,000 and exper associated with the project will be $35,000 Calculate the net present value and the present value index for each project using the present value tables provided belo Present Value of $1 (a single sum) at Compound Interest Present Value of an Annuity of $1 at Compound Inter Project B This project repres an intalnestment of $135,000. The jest will have a fe of 5 project will be $100,000 and expenses No the a minus sign to indicate a negative NPV f an amount is res, enter "" Enter the present value index to 2 decimals Total present value of net cash flow Amount to be invested Net present value Present value index Project A Project Project A Project

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