Essay
The Serena Company is evaluating two mutually exclusive projects with three-year lives. Each project requires an investment of $10,000. The projects have the following cash inflows received at the end of each year. 
a. Determine the net present value of each project using an 8% discount rate.
b. What can you conclude about the effect the timing of the cash flows has upon a project's net present value?
Correct Answer:
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NPV of Project 1: 
NPV of Proj...View Answer
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Correct Answer:
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NPV of Proj...View Answer
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