Calculate NPV for Project A and Project B of the Hybrid Ltd planning 2024/2025 

To calculate the **Net Present Value (NPV)** of a project, we follow the basic formula:

\[
NPV = \sum_{t=1}^{n} \frac{R_t}{(1 + r)^t} - C_0
\]

Where:
- \( R_t \) = Net cash inflow during the period \( t \)
- \( r \) = Discount rate (cost of capital)
- \( t \) = Time period (usually in years)
- \( C_0 \) = Initial investment

To proceed with calculating the NPV for **Project A** and **Project B** of Hybrid Ltd, I need the following details for both projects:
1. Initial investment \( (C_0) \) for each project.
2. The net cash inflows (revenue or savings) for each year over the project's lifespan \( (R_1, R_2, R_3, \dots, R_n) \).
3. The discount rate \( (r) \) that Hybrid Ltd is using.

Once these details are available, I can compute the NPV for both projects.

Feel free to provide that information! Would you like to share those details, or should I clarify how to calculate NPV further?

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Here are 5 relevant follow-up questions:
1. What are the initial investment costs for both Project A and Project B?
2. What are the expected cash inflows for each year for both projects?
3. What discount rate is being used by Hybrid Ltd for its NPV calculations?
4. How long are the projects expected to run (in terms of years)?
5. Are there any salvage values or end-of-project benefits to consider?

**Tip**: Always ensure your discount rate reflects the riskiness of the project and the cost of capital.

Calculate NPV for Project A and Project B of the Hybrid Ltd planning 2024/2025

Discover how to calculate the Net Present Value (NPV) for Project A and Project B of Hybrid Ltd for 2024/2025. This finance tutorial covers the NPV formula, discount rates, initial investments, and cash inflows, providing a step-by-step guide. Suitable for university-level finance students.

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