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1. Johnson Farm Implement is faced with two mutually exclusive projects, P and Q. The following are the data about the two projects, P $40,000
1. Johnson Farm Implement is faced with two mutually exclusive projects, P and Q. The following are the data about the two projects, P $40,000 Project Initial Investment Project Life Annual Cash Flow Risk Adjusted Discount Rate Risk-Free Rate of Return 3 years Q $50,000 3 years $25,000 14. 6% $15,000 10% 6% a) Evaluate the projects using risk-adjusted discount rates. (See Table above) b) Which project do you recommend? (See Table above)
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