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28. Romo Company is considering investing in one of the following two projects: Annual Cash Inflows Year Project A S 1,000 2.000 2.000 Project B
28. Romo Company is considering investing in one of the following two projects: Annual Cash Inflows Year Project A S 1,000 2.000 2.000 Project B 3.000 1,000 1.000 1.000 6,000 Total $ 6,000 Required: Show your work if you want partial credit. Total points: 30 1) Which project is more desirable strictly in terms of cash inflows? Why? Write a short sentence to explain your opinion Which Project? iw: 2) Compute the present value of each project's cash inflows assuming the company's required rate of return is 10%. Project A ProjectB
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