What is the npv of each investments

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Davis Corporation is faced with two independent investment opportunities. The corporation has an investment policy which requires acceptable projects to recover all costs within 3 years. The cost of capital is 10 percent. The cash flows for the two projects are:

     Project A     Project B 

 Year Cash Flow   Cash Flow  

 0    -$120,000   -$90,000 

 1      42,000    30,000 

 2      43,000    30,000 

 3      44,000    30,000 

 4      45,000    30,000

 5    46,000    30,000

What is the NPV of each investments?

Reference no: EM131554549

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