单选题
An analyst has gathered the following data about a company with a 12 percent cost of capital:
|
|
Project A |
Project B |
|
Cost |
$15000 |
$25000 |
|
Life |
5 years |
5 years |
|
Cash inflows |
$5000/year |
$7500/year |
If the projects are independent, what should the company do? A. Reject A, Reject B. B. Accept A, Reject B. C. Accept A, Accept B.
【正确答案】
C
【答案解析】Project A: N =5, PMT=5000, FV=0, I/Y=12, CPT PV =18024; NPV for Project A = 18024 - 15000 = 3024.
Project B: N =5, PMT =7, 500, FV =0, I/Y = 12, CPT PV =27036; NPV for Project B = 27036 - 25000 = 2036.
For independent projects the NPV decision rule is to accept all projects with a positive NPV.
Therefore, accept both projects.