This paper circulates around the core theme of Construct NPV Profiles for these two projects. b. If the two projects were mutually exclusive, which would you accept if your firm’s cost of capital were 4%? Which would you accept if your firm’s cost of capital were 9%? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Consider Projects A and B, with net cash flows as follows:
—- Net Cash Flows —-
Project A Project B
Initial Cost at T-0 (Now) ($20,000) ($20,000)
cash inflow at the end of year 1 10,000 6,000
cash inflow at the end of year 2 8,000 16,000
cash inflow at the end of year 3 6,000 26,000
a. Construct NPV Profiles for these two projects.
b. If the two projects were mutually exclusive, which would you
accept if your firm’s cost of capital were 4%? Which would you accept if
your firm’s cost of capital were 9%?
