What are the projects net present values

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Division Alex is considering two facility investment projects, each of which requires an up-front expenditure of $15 million. Alex estimates that the investments will produce the following net cash flows:

Year
1 2 3
Project Jared
$6,000,000.00 $10,000,000.00 $19,000,000.00
Project TJ

$18,000,000.00 $10,000,000.00 $4,000,000.00

1. What are the projects' net present values, assuming the cost of capital is 5%?

2. What are the projects' net present values, assuming the cost of capital is 10%?

3. What are the projects' net present values, assuming the cost of capital is 15%?

(Use Excel)

Reference no: EM131166035

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