A company is considering two alternative investment opportunities,each of which requires an initial cash outlay of $110,000.The expected net cash flows from the two projects follow:
Based on a comparison of their net present values,and assuming the same discount rate of 12% is required for both projects,which project is the better investment? Use the table values below to compute the net present value of each project's cash flows.

Question

A company is considering two alternative investment opportunities,each of which requires an initial cash outlay of $110,000.The expected net cash flows from the two projects follow:
  Based on a comparison of their net present values,and assuming the same discount rate of 12% is required for both projects,which project is the better investment? Use the table values below to compute the net present value of each project's cash flows.

Quizplus · Accepted Answer

The Answer of A company is considering two alternative investment opportunities,each of which requires an initial cash outlay of $110,000.The expected net cash flows from the two projects follow:
  Based on a comparison of their net present values,and assuming the same discount rate of 12% is required for both projects,which project is the better investment? Use the table values below to compute the net present value of each project's cash flows.

A Company Is Considering Two Alternative Investment Opportunities,each of Which