What is the net present value of the investments

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You are considering investing in one of two different projects. Two investment options are available as follows:

Projekt A, million $ Projekt B, million $

(Basic Investment) 1200 75

Net cash flow, year 1 100 22

Year 2 250 30

Year 3 400 41

Year 4 740 47

Year 5 850 48

Residual value 0 0

Tax rate No tax No tax

The discount rate is 16%

a) What is the net present value of the investments?

b) Which project should you invest in and why?

Reference no: EM133060018

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