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Calculate the 6-year extended npv of the project

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Reference no: EM133113129

Projects A and B have the following expected net cash flows:

.Time 

Project A Cash Flow

Project B Cash Flow

0

-P1,000,000

-P1,000,000

1

500,000

700,000

2

500,000

700,000

3

500,000

-

Assume that both projects have 10% cost of capital, and each of the projects can be indefinitely repeated with the same net cash flows. Calculate the 6-year extended NPV of the project that creates the most value. 

Reference no: EM133113129

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