dominatord2650 dominatord2650

21-07-2022
Business

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You are considering the following two mutually exclusive projects. The required rate of return is 10. 75 percent for project a and 12 percent for project b. Which project should you accept and why?.

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Tutorconsortium361 Tutorconsortium361

02-08-2022

Project A because its NPV is about $796 more than the NPV of project B.

What is NPV?

The net present value (NPV) of an investment opportunity is a financial statistic that attempts to represent the overall worth of the opportunity. The concept of NPV is to project all of the future cash inflows and outflows connected with investment, discount all of those future cash flows to the present day, and then add them all together. The net present value, also known as net present worth, is applied to a sequence of cash flows that occur on various dates. The present value of a cash flow is determined by the time elapsed between now and the cash flow. It is also affected by the discount rate. The temporal value of money is accounted for by NPV.

To learn more about NPV from the given link:

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