Assignment Help - homework help

Projects having the same net present value


Question: Shelby Inc. is considering two projects which have the following cash flows:

Year    Project 1
Cash Flow    Project 2
Cash Flow
0    -$2,000    -$1,900
1    500             1,100
2    700               900
3    800               800
4    1,000             600
5    1,100             400

At what cost of capital would the two projects have the same net present value?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Projects having the same net present value
Reference No:- TGS02045125

Now Priced at $20 (50% Discount)

Recommended (93%)

Rated (4.5/5)