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Determine the net present values

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Labeau Products, Ltd., of Perth, Australia, has $24,000 to invest. The company is trying to decide between two alternative uses for the funds as follows:

  Invest in Project X Invest in Project Y
Investment required $24,000 $24,000
Annual cash inflows $8,000  
Single cash inflow at the end of 6 years $44,000
Life of the project 6 years

6 years

The company's discount rate is 14%.

Determine the appropriate discount factor(s) using tables.

Required:

a. Determine the net present values. (Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.)

Reference no: EM131820384

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