An analyst has gathered the following data

问题单项选择题

An analyst has gathered the following data about a company with a 12 percent cost of capital.

	Project A	Project B
Initial cost	$15000	$20000
Life	5years	4years
Cash inflows	$5000/year	$7500/year

If the projects are independent, the company should:()

A. accept both projects.

B. accept project A and reject project B.

C. reject project A and accept project B.

答案

参考答案：A

解析：

Independent projects accept all with + NPV or IRR ＞ cost of capital, NPV_A) = 3024 ( NPV computation is easy-treat cash flows as an annuity→N = 5; I=12 ; PMT = 5000 ; FV = 0 ; CPT PV =18024→NPV = 18024 - 15000 =3024), NPV_B = 2780 (NPV-treat cash flows as an annuity, N = 4 ; I = 12 ; PMT = 7500 ; FV = 0 ; CPT PV = 22780→NPV = 22780 - 20000 = 2780).