Better Health Inc. is evaluating two capital investments, each of which requires an up-front (Year 0) expenditure of $1.5 million. The projects are expected to produce the following net cash inflows: Year Project A Project B 1 $500,000 $2,000,000 2 $1,000,000 $1,000,000 3 $2,000,000 $600,000 The Discount Rate is 10% assuming a normal risk project. You may use Excel on your computer to answer this Question. Respondus has been removed from this Exam so you have access to Excel. Assume Project B is more 30% more risky than Project A and therefore would have a Discount Rate of 13% rather than 10%. What is the new NPV for Project B
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