- Intro Office Min Is Considering Several Risk Free Projects Project Initial Cash Flow A 8 500 B 4 000 5 300 The Risk 1 (44.72 KiB) Viewed 12 times
Intro Office Min is considering several risk-free projects: Project Initial cash flow A -8,500 B -4,000 -5,300 The risk-
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Intro Office Min is considering several risk-free projects: Project Initial cash flow A -8,500 B -4,000 -5,300 The risk-
Intro Office Min is considering several risk-free projects: Project Initial cash flow A -8,500 B -4,000 -5,300 The risk-free interest rate is 8%. Part 1 What is the NPV of project A? 944.44 Correct ✔ NPV = CF + CF 1+r Part 2 What is the NPV of project B? D+ decimals -8,500+ 10,200 1+0.08 Cash flow in 1 year 10,200 4,200 6,095 BAttempt 1/10 for 10 pts. =944.44 BAttempt 3/10 for 10 pts.