Тестовое задание
Fly Co gathered the following data about cash flows (in $):
The annual interest rate is 10%. Which project(s) will be acceptable for investment based on the NPV criterion?
We will calculate net present value of the cash ows of all three projects and note that only for B it is positive:
NPV_A = \frac{-10{,}000}{1.1} + \frac{3{,}000}{(1.1)^2} + \frac{3{,}000}{(1.1)^3} + \frac{3{,}000}{(1.1)^4} + \frac{3{,}000}{(1.1)^5} \approx -446
NPV_B = \frac{-25{,}000}{1.1} + \frac{15{,}000}{(1.1)^2} + \frac{15{,}000}{(1.1)^3} + \frac{-10{,}000}{(1.1)^4} + \frac{15{,}000}{(1.1)^5} \approx 3{,}423
NPV_C = \frac{-10{,}000}{1.1} + \frac{5{,}000}{(1.1)^2} + \frac{5{,}500}{(1.1)^3} \approx -826