Lambert Manufacturing has $60,000 to invest in either Project A or Project B. The following data are available on these projects:

Both projects have a useful life of six years. At the end of six years, the working capital investment will be released for use elsewhere. Lambert's discount rate is 14%. (Ignore income taxes in this problem.)
-The net present value of Project A is closest to which of the following?

Question

Lambert Manufacturing has $60,000 to invest in either Project A or Project B. The following data are available on these projects:

Both projects have a useful life of six years. At the end of six years, the working capital investment will be released for use elsewhere. Lambert's discount rate is 14%. (Ignore income taxes in this problem.)
-The net present value of Project A is closest to which of the following?

Quizplus · Accepted Answer

The net present value (NPV) calculation involves discounting future cash flows to the present value using a specific discount rate. The correct NPV value, based on the provided options, is closest to $81,290.

Lambert Manufacturing Has $60,000 to Invest in Either Project a or Project