case 17 comparison of 7 and 8 using incremental cash flows

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Project Number 7 8 "8-7 Initial Investmen ($2,000) ($2,000) $0 Year 1 $1,200 ($350) ($1,550) 2 900 (60) ($960) 3 300 60 ($240) 4 90 350 $260 5 70 700 $630 6 1,200 $1,200 7 2,250 $2,250 IRR Discount Rate 10.18% NPV $159.10 $159.10 10.18%

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financial management case

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Investment Detective ( UVA-F-0813)

Sheet1

Project Number78"8-7

Initial Investment($2,000)($2,000)$0Year 1$1,200($350)($1,550)2900(60)($960)330060($240)490350$260570700$63061,200$1,20072,250$2,250IRRDiscount Rate10.18%NPV$159.10$159.1010.18%

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