Table 11.12
Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent.
-The Annualized NPV of project A is ________. (See Table 11.12)

Question

Table 11.12
Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent. 
-The Annualized NPV of project A is ________. (See Table 11.12)

Quizplus · Accepted Answer

The correct choice is $22,673, which is the annualized net present value calculated based on the cash flows and discount rate provided in Table 11.12.

Table 11.12 Yong Importers, an Asian Import Company, Is Evaluating Two Mutually