Lakelord Company is considering two mutually exclusive projects, A and B. Project A costs $94072 and is expected to generate $56196 in year one and $67090 in year two. Project B costs $118377 and is expected to generate $52195 in year one, $60452 in year two, $62774 in year three, and $47559 in year four. The firm's required rate of return for these projects is 0.060. The net present value for Project A is Instruction: Type ONLY your numerical answer in the unit of dollars, NO $ sign, NO comma, and round to the nearest whole number. E.g.. if your answer is $7,001.56, should type ONLY the number 7002, NEITHER 7,001.6, $7001.6, $7.001.6, NOR 7001.56. Otherwise, Blackboard will treat it as a wrong answer.

Lakelord Company is considering two mutually exclusive projects, A and B. Project A costs $94072 and is expected to generate $56196 in year one and $67090 in year two. Project B costs $118377 and is expected to generate $52195 in year one, $60452 in year two, $62774 in year three, and $47559 in year four. The firm's required rate of return for these projects is 0.060. The net present value for Project A is Instruction: Type ONLY your numerical answer in the unit of dollars, NO $ sign, NO comma, and round to the nearest whole number. E.g.. if your answer is $7,001.56, should type ONLY the number 7002, NEITHER 7,001.6, $7001.6, $7.001.6, NOR 7001.56. Otherwise, Blackboard will treat it as a wrong answer.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...

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