Question
A company has USD100,000 to invest. It is considering two mutually exclusive projects whose cash flows are estimated as follows: YEAR PROJECT A PROJECT B
A company has USD100,000 to invest. It is considering two mutually exclusive projects whose cash flows are estimated as follows:
YEAR PROJECT A PROJECT B
0 (100,000) (100,000)
1 50,000 70,000
2 60,000 50,000
3 40,000 30,000
Which project should the company select if its cost of capital is 10%
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Applied Financial Macroeconomics And Investment Strategy
Authors: Robert T McGee
1st Edition
1137428394, 978-1137428394
