Crane Corp. management is evaluating two independent projects. The costs and expected cash flows are given in the following table.
The cost of capital is 10.59 percent.
Year
Project A
Project B
0
- $295,361
- $388,733
1
119,300
138,190
2
119,300
162,830
3
119,300
159,500
4
119,300
128,800
5
119,300
129,800
a. Calculate the projects' NPV. (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other
intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)