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What are the project net present values

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Problem: Your division is considering two facility investment projects, each of which requires an upfront expenditure of $15 million. You estimated that the investments will produce the following net cash flows:

Project A

Year 1: $5,000,000

Year 2: $10,000,000

Year 3: 20,000,000

Project B

Year 1: $20,000,000

Year 2: $10,000,000

Year 3: 6,000,000

What are the project's net present values, assuming the cost of capital is 10%, 5%, 15%. What does this analysis tell you about the projects?

Reference no: EM132459878

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