Question

Project B:

- NPV = (-30,000)/(1+0.08)^0 + 8,000/(1+0.08)^1 + 4,000/(1+0.08)^2 + 12,000/(1+0.08)^3 + 10,000/(1+0.08)^4 + 0/(1+0.08)^5
- NPV = -30,000 + 7,407.41 + 3,348.21 + 11,002.69 + 7,453.06 + 0
- NPV = R6,813.38
Please verify if the answer is correct

Answer 1

[AI-generated answer — Bot GPT 3.5]

Yes, the NPV calculation for Project B is correct. The NPV is R6,813.38.