Compare Two Projects (SIA, adapted) The management of Dilex Diversified must decide between two proposals. The following
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Compare Two Projects (SIA, adapted) The management of Dilex Diversified must decide between two proposals. The following information is available:
INVESTMENT NET CASH INFLOWS PROPOSAL NOW PERIOD 1 PERIOD 2__ PERIOD 3 A $ 80,000 $95,400 $39,000 $12,000 B 100,000 35,000 57,500 80,000 Assuming that the company can earn 12 percent on projects of this type and that the cash inflows are received at the end of each period, advise management regarding the proposal that should be selected. Submit computations of net present values. Ignore income tax considerations. L01
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