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Answered Same Day Nov 27, 2021

Solution

Mohammad Wasif answered on Dec 01 2021
142 Votes
a)
                NET PRESESNT VALUE
            PROJECT A            PROJECT B
        Discount rate    15.00%            15.00%
        Period     5            5
        Initial Cash flow    $ 194,000.00            $ 336,000.00
        Proffessional fees    $ 17,000.00            $ 17,000.00
        Total outflow    $ 211,000.00            $ 353,000.00
        Projec NPV    $ 235,272.63            $ 355,969.34
        Dfference    $ 24,272.63            $ 2,969.34
        %    11.50%            0.84%
                PROJECT A                    PROJECT B
        YEAR    FUTURE VALUE    FACTOR    PRESENT VALUE            YEAR    FUTURE VALUE    FACTOR    PRESENT VALUE    YEAR
        0    $ (211,000.00)                    0    $ (353,000.00)
        1    $ 86,000.00    0.8696    $ 74,782.61            1    $ 118,000.00    0.8696    $ 102,608.70
        2    $ 86,000.00    0.7561    $ 65,028.36            2    $ 130,000.00    0.7561    $ 98,298.68
        3    $ 67,000.00    0.6575    $ ...
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