Question
(2) Company B currently has two projects A and B to choose from: Project A requires an initial investment of 160,000 yuan, generates a net
(2) Company B currently has two projects A and B to choose from: Project A requires an initial investment of 160,000 yuan, generates a net cash flow of 80,000 yuan per year, has a lifespan of 3 years, and is updated after 3 years without residual value; Project B requires an initial investment of 210,000 yuan, and generates a net cash flow of 64,000 yuan per year. The service life of the project is 6 years, and it will be updated after 6 years without residual value. For example, the companys cost of capital rate is 16%. Which project should Company B choose?
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