Consider the following two projects: The NPV for project alpha is closest to: $20.21 $16.92 $24.01 $14.41
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Question
Consider the following two projects: The NPV for project alpha is closest to: $20.21 $16.92 $24.01 $14.41
Solution
NPV=Present value of inflosPresent value of outflow
=(99.2379)=$20.221 (approx)
Year 
Cash flow 
Discount factor@15% 
Present value 
1 
20 
0.87 
17.4 
2 
25 
0.756 
18.9 
3 
35 
0.658 
23.03 
4 
35 
0.572 
20.02 
5 
40 
0.497 
19.88 


Total 
$99.23 
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