Calculation of npv of two projects with different lives

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Calculation of NPV of two projects with different lives and cash flows.

1. Edmondson Electric Systems is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected.

WACC

10.00%

 

 

 

Year:

0

1

2

3

Cash flows:

-$1,000

$500

$500

$500

2. Humboldt Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that is a project's projected NPV is negative, it should be should be rejected.

WACC

9.00%

 

 

 

 

 

Year:

0

1

2

3

4

5

Cash flows:

-$1,000

$300

$300

$300

$300

$300

Reference no: EM1313397

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