Question: You are given the following information for two projects: Project A Project B Initial investment $ 4 2 , 0 0 0 $ 4 5

You are given the following information for two projects:
Project A Project B
Initial investment $42,000 $45,000
Year Operating cash inflows
1 $14,000 $28,000
214,0004,000
314,00010,000
414,00010,000
514,00010,000
If the WACC is 0.11, what is the EVA in year 2 for Project B?

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