Determine the net present value of the projects

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Reference no: EM132036969

Yetter Electronics is considering two new investments. Project C calls for the purchase of a coolant recovery system. Project H represents and investment ina heat recovery system. The company wants to use a net present value profile to compare the projects. The cash flow and investment patterns are as follows:

Project C Project H

($25,000 investment) ($25,000 investment)

Year Cash Flow Year Cash Flow

1 $6,000 1 $20,000

2 $7,000 2 6,000

3 $9,000 3 5,000

4 $12,000

A. Determine the net present value of the projects based on a zero discount rate

B. Determine the net present value of the projects based on 9% discount rate.

Reference no: EM132036969

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