Question
11. You are considering investment in the following projects. Assume that your discount rate is 12% per year for both projects. Project As cash flows
11. You are considering investment in the following projects. Assume that your discount rate is 12% per year for both projects.
Project As cash flows
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 |
| -$12,000 | $7,000 | $3,000 | $2,000 | $1,500 |
Project Bs cash flows:
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 |
| -$11,000 | $6,000 | $2,500 | $1,500 | $1,200 |
1/If projects A and B are mutually exclusive which project will you accept, if any
2/Now suppose that your discount rate is 5% per year for both projects. If projects A and B are mutually exclusive which project will you accept, if any
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Entrepreneurship In Finance Successfully Launching And Managing A Hedge Fund In Asia
Authors: Henri Arslanian
1st Edition
331943912X,3319439138
