What is the simple npv of each project

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Reference no: EM131245234

The cash flows for two mutually exclusive projects with different lives are given below:3

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The opportunity cost of capital for project A is 10%, but project B is much riskier and has a 40% cost of capital.

a) What is the simple NPV of each project?

b) What is the NPV(N, co) of each project?

c) What is the annual equivalent value [see Eq. (3.5)] of each project?

d) Which project should be accepted? Why?

Reference no: EM131245234

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