Question: You want to evaluate 2 projects A & B. project A will cost 80,000 USD and B will cost 70,000 USD, - yearly operations costs
You want to evaluate 2 projects A & B.
project A will cost 80,000 USD and B will cost 70,000 USD, - yearly operations costs are 18000 for A and 15000 for B - revenues for A are expected to be 54000 USD per year and for B 36000 USD per year - project A is expected to last 6 years and B for 7 years a- evaluate both projects, using the NPV (net present value method), calculate the NPV for each and decide which one to choose. rate of the bank is r= 5.25% (Please show brief logic of calculations for Project A, and then just state the answers for Project B)Required to answer. Multi Line Text.
(10 Points)
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