Based on the information above, identify which project (Project A or B) should be accepted? Explain why. By changing the

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answerhappygod
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Based on the information above, identify which project (Project A or B) should be accepted? Explain why. By changing the

Post by answerhappygod »

Based on the information above, identify which project (Project
A or B) should be accepted? Explain why. By changing the figures in
the excel template (above), assume the interest rate for Project A
fell to 13%, and Cash outflow (The initial investment) was
$950,000, Cash Inflows was $350,000 per annum for the 6 years, and
Net inflows was also $250,000. For Project B, assume interest rate
also fell to 13% but Cash outflow, Inflow and Net Inflows remain
the same. What is the new NPV for each of the project? Would you
receommend that any of these project be accepted by the investor?
Why/Why not?
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