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| Teaching Since: | May 2017 |
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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
......................
Labeau Products, Ltd., of Perth, Australia, has $23,000 to invest. The company is trying to decide between two alternative uses for the funds as follows:
 Â
| Â | Invest in Project X |
Invest in Project Y |
||
| Â Â Investment required | $ | 23,000 Â Â | $ | 23,000 Â |
| Â Â Annual cash inflows | $ | 7,000 Â Â | Â | Â |
| Â Â Single cash inflow at the end of 6 years | Â | Â | $ | 43,000 Â |
|   Life of the project | 6 years  | 6 years  | ||
 Â
| The company’s discount rate is 16%. |
 Â
|
 |
 Â
| Required: |
| a. |
Determine the net present values. Â .............. |
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