Use the Table for the Question(s)below

question 1

Essay

Use the table for the question(s)below.
Consider two mutually exclusive projects with the following cash flows:
-If the discount rate for project A is 16%,then what is the NPV for project A?

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Definitions:

Indirect Method

A way of reporting cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.

Reported Net Income

The total profit or loss of a company after all expenses and taxes have been subtracted from total revenue, as shown on the income statement.

Direct Method

An approach to preparing the cash flow statement where actual cash inflows and outflows from operational activities are listed.