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What are the net present values of the project

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Reference no: EM133110936

Your division analyzes two investment projects, which require an initial expense of $ 15 million. You calculate that the investment will produce the following net cash flows:

Year

Project A

Project B

1

5,000,000 

20,000,000 

2

10,000,000

10,000,000 

3

20,000,000 

6,000,000 

What are the net present values of the project, assuming a cost of capital of 10%? 5%? 15 percent?

Reference book: 

Corporate Finance: A Focused Approach by Ehrhardt and Brigham

Second Edition

Reference no: EM133110936

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