Findell Corporation is considering two projects,A and B,and it has gathered the following estimates for the projects: $$\begin{array} { l c c }
& \text { Project A } & \text { Project B } \
\text { Useful life } & 5 \text { years } & 5 \text { years } \
\text { Present value of cash inflows } & \$ 84,360 & \$ 55,100 \
\text { Present value of cash outflows } & \$ 77,000 & \$ 49,000
\end{array}$$ What is the net present value of cash flows for project B?

Question

Findell Corporation is considering two projects,A and B,and it has gathered the following estimates for the projects: $$\begin{array} { l c c } 
& \text { Project A } & \text { Project B } \
\text { Useful life } & 5 \text { years } & 5 \text { years } \
\text { Present value of cash inflows } & \$ 84,360 & \$ 55,100 \
\text { Present value of cash outflows } & \$ 77,000 & \$ 49,000
\end{array}$$ What is the net present value of cash flows for project B?

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 Has