Findell Corporation is considering two projects, A and B, and it has gathered the following estimates for the projects: $\begin{array}{lcc}
&\text {Project A}&\text {Project B}\
\text { Useful life } & 5 \text { Years } & 5 \text { Years } \
\text { Present value of cash inflows } & \$ 84,360 & \$ 55,100 \
\text { Present value of cash outflows } & \$ 77,000 & \$ 49.000
\end{array}$ What is the net present value of cash flows for project B?

Question

Quizplus · Accepted Answer

The net present value (NPV) of cash flows for Project B is calculated by subtracting the present value of cash outflows from the present value of cash inflows: $55,100 - $49,000 = $6,100.

Findell Corporation Is Considering Two Projects, a and B, and It