What are the npvs of the respective projects

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Fast Plane Industries is expanding its operations. The costs and expected cash flows of two mutually exclusive projects are given in the following table. The company uses a discount rate of 15.39 percent for such projects.

Year Project a Project b

0 $-2150383 $-7463486

1 $624540 $2242250

2 $660800 $3106500

3 $966963 $2620250

4 $1025763 $3542175

5 $675063 $2781350

What are the NPVs of the respective projects? Should Fast Plane accept or reject the projects?

Reference no: EM132535514

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