Calculate the net present value of each project

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Reference no: EM131188298

The Charlie Company needs to decide between the following two projects, Project Good and Project Could BeBetter. The company's cost of capital is 6%. The cost of each is the same at $20,000 today. The estimated year-end cash flows are as follows: Project Good: Year 1 $14,000; Year 2 8,000; and Year 3 $5,000. Project CouldBeBetter: Year 1 $5,000; Year 2 $8,000; and Year 3 $14,000. SHOW ALL WORK on the TI BAII Plus Calculator for full credit. a) Calculate the Net Present Value (NPV) of each project. b) Which project would add more value to the company?

Reference no: EM131188298

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