Sharp Company has $28,000 to invest. The company is trying to decide between two

Question

Sharp Company has $28,000 to invest. The company is trying to decide between two alternative uses of the funds as follows:

Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables.

Determine the net present value. (Negative amounts should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, other intermediate calculations and final answers to the nearest whole dollar.)

Sharp Company has $28,000 to invest. The company is trying to decide between two alternative uses of the funds as follows:

Explanation / Answer

Hi,

Please find the answer as follows:

Project A

NPV = -28000 + 6500*6.462 = 14003

Project B

NPV = -28000 + 68000*.160 = -17120

Thanks.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.