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A CFO is analyzing the following capital budgeting projects (figures in millions in the table) and my investment budget is 172 Million $. Which option
A CFO is analyzing the following capital budgeting projects (figures in millions in the table) and my investment budget is 172 Million $. Which option will the CFO choose if the cost of opportunity for the company is 9%? PROJECT Cost (time 0) Cahflow (time 1) Cahflow (time 2) Cow (time 3) Cahflow (time 4) A -172.00 0.00 0.00 100.00 125.00 B -172.00 50.00 50.00 50.00 50.00 Accept project A Accept both projects Accept project B Reject both projects
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