Your brother announces at Thanksgiving Dinner that he is thinking of becoming a day trader. What questions might you ask him to
1 answer:
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Answer:
initial cash flow is 2,929,000
Explanation:
Attached is the table
Answer and Explanation:
The computation of the net present value is presented in the attachment below:
For project A, the net present value is $91,771.53 and for project B, the net present value is $79,390.69
It is computed after considering the discounting factor that comes from
= 1 ÷ (1 + discount rate)^number of years
for year 1, it is
= 1 ÷ (1 + 0.06)^1
The same applied for the remaining years
