Question: Zayas, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 - 78500 -78500 1 43000 21000 2

Zayas, LLC, has identified the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)
0 - 78500 -78500
1 43000 21000
2 29000 28000
3 23000 34000
4 21000 41000

if the required return is 11 percent, what is the NVP for each of these projects? Which project will you choose if you apply the NVP decision rule?

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