Please explain step by step with formulas used on how to

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Please explain step by step with formulas used on how to solve this problem:

Net present value - Independent projects. Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the following table, and indicate whether each is acceptable.

 

Project A

Project B

Initial investment (CF0)

$26,000

$500,000

Year (t)

Cash inflows (CFt)

1

$4,000

$100,000

2

4,000

120,000

3

4,000

140,000

4

4,000

160,000

5

4,000

180,000

6

4,000

200,000

7

4,000

 

8

4,000

 

9

4,000

 

10

4,000

 

Reference no: EM13986227

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