What is the total npv of the two investments

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Reference no: EM131881271

A. company invests $60,000 in Project A at the beginning of year 1 the cash flows at the end of year 1 through the end of year 5 are $8,000, $-5,000, $20,000, $45,500, and $10,000 respectively.

The same company invests $50,000 at the beginning of year 1 in Project B The cash flows at the end of year 1 through the end of year 5 are $12,000, $5,000, $-20,000, $45,500, and $30,000 respectively.

What is the total NPV of the two investments if the discount rate is 12%?

Reference no: EM131881271

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