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A company is considering two average risk alternatives ways of producing a product. Process A has a cost of $35,000 and will produce net cash
A company is considering two average risk alternatives ways of producing a product. Process A has a cost of $35,000 and will produce net cash flows of $32,500 per year for 2 years. Process B will cost $37,500 and will produce cash flows of $26,500 per year for 4 years The company Can extend each of the two alternatives as needed. The cash inflows occur at the end of the year, and this company cost of capital is 12 percent. What is the EAA of the worse project?
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