Question

Calculate Bayesian, Inc.s Change in Net Working Capital (ANWC)? Bayesian, Inc. 2017 Income Bayesian, Inc. 2016 2017 Condense
A firm is considering the following two mutually exclusive projects. The required return on each project is 14 percent. Which
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Answer #1

Working capital = total current aseets - total current liabilities

in 2017:

Total current assets = 2960

Total current liabilities = 1220

working capital = 2960 - 1220 = 1740

In 2018:

Total current assets = 2590

Total current liabilities = 1330

working capital = 2590 - 1330 = 1260

Change = 1740 - 1260 = 480 (in thousands)

= 480,000

Fourth option is correct.

2)

first lets calculate NPV of each Project

NPV = Present value of futurecash flows - initial cash outflow

Project A:

B6 for ENPV(14%,B3:B5)+B2 D E C F 1 Year 1 mo B cash flows -46000 25000 18000 16000 579.7843 NPV

Project - B:

fo =NPV(14%,B3:B5)+B2 D E F C 1 B6 А Year 0 1 3 B cash flows - 46000 11000 19000 32000 131.91 4 5 3 6 NPV

Project A because it has highest Net present value (579.7843)

Fourth option is correct.

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