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The Cash Flows for Two Projects,A and B,are Shown in the Table,below.Notice

question 26

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The cash flows for two projects,A and B,are shown in the table,below.Notice that Project A has a life of 3 years and Project B has a 2 year life.Use the replacement chain approach to calculate the NPV of each project over a common life-span.What is the NPV of the Project A chain minus the NPV of the Project B chain? Assume that the cost of capital is 8%.
The cash flows for two projects,A and B,are shown in the table,below.Notice that Project A has a life of 3 years and Project B has a 2 year life.Use the replacement chain approach to calculate the NPV of each project over a common life-span.What is the NPV of the Project A chain minus the NPV of the Project B chain? Assume that the cost of capital is 8%.   A)  $0.45 B)  $0.47 C)  $0.49 D)  $0.50 E)  $0.52


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