Find the total present value of net cash flow for A and B

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Question - Krause Enterprises is looking to invest in Project A or Project B. The data surrounding each project is provided below. Krause's cost of capital is 10%.

Project A This project requires an initial investment of $165,000. The project will have a life of 3 years. Annual revenues associated with the project will be $130,000 and expenses associated with the project will be $35,000.

Project B This project requires an initial investment of $140,000. The project will have a life of 5 years. Annual revenues associated with the project will be $105,000 and expenses associated with the project will be $60,000.

Required - Find the total present value of net cash flow for A and B?

Reference no: EM132982130

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