(Ignore income taxes in this problem.) Rushforth Manufacturing has $90,000 to invest in either Project A or Project B. The following data are available on these projects: Both projects will have a useful life of 6 years. At the end of 6 years, the working capital investment will be released for use elsewhere. Rushforth's required rate of return is 14%.
-The net present value of Project A is:

Question

(Ignore income taxes in this problem.) Rushforth Manufacturing has $90,000 to invest in either Project A or Project B. The following data are available on these projects:  Both projects will have a useful life of 6 years. At the end of 6 years, the working capital investment will be released for use elsewhere. Rushforth's required rate of return is 14%.
-The net present value of Project A is:

Quizplus · Accepted Answer

The net present value of Project A is $27,341. This is calculated by taking the present value of the cash inflows and subtracting the present value of the cash outflows. The present value of the cash inflows is $121,341 and the present value of the cash outflows is $94,000.

(Ignore Income Taxes in This Problem