What are the two projects net present values

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Your division is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investments 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 two projects' net present values, assuming the cost of capital is 5%? 10%? 15%?

Reference no: EM131912883

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