What is the npv of project a at a discount rate of

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Reference no: EM131995185

Stephens inc is considering investing in one of two mutually exclusive 4 year projects. project a requires equipment with a cost of $140000 and increases net income by $5000, $10000, $20000, $30000 in years 1-4.

Project b required equipment cost of $200000 and increases cash flow by $70000 per year in years 1-4. both projects have a 4 year life with straight line depreciation.

What is the NPV of project A at a discount rate of 10%? the professor says it's $19,272 but on a ba ii plus im getting -91,673. what am i doing wrong? he's not clear on the explanation, he did a timeline and listed cashflows, but added 35000 to all the positive cash flows. please help with explanations in detail.

Reference no: EM131995185

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