Calculate the net present value of cash flow stream

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Complete the following 6 Wk 3 Financial Exercises: Problem Set 1, Part 2 problems:

1. Calculate the net present value (NPV) of the following cash flow stream if the required rate is 12%:

2. Calculate the NPV of the following cash flow projections based on a required rate of 10.5%:

Cash Flow

Is this a good project for the business to accept? Explain why or why not.

3. A company needs to decide if it will move forward with 2 new products that it is evaluating. The 2 initiatives have the following cash flow projections:

Year Cash Flow

Based on the risk of each project, the company has a required rate of return of 11% for Project A and 11.5% for Project B. The company has a $1.5 million budget to spend on new projects for the year. Should the company move forward with one, both, or neither of the two new products? Show your work to support your answer yes they should move foward with both products.

Complete the following 6 Wk 3 Financial Exercises: Problem Set 1, Part 2 problems:

1. Calculate the net present value (NPV) of the following cash flow stream if the required rate is 12%:

2. Calculate the NPV of the following cash flow projections based on a required rate of 10.5%:

Cash Flow

Complete the following 6 Wk 3 Financial Exercises: Problem Set 1, Part 2 problems:

1. Calculate the net present value (NPV) of the following cash flow stream if the required rate is 12%:

Reference no: EM133112113

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