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A company is considering two different projects. Project A requires an initial investment of $50,000 and is expected to generate cash inflows of $15,000 per
A company is considering two different projects. Project A requires an initial investment of $50,000 and is expected to generate cash inflows of $15,000 per year for 5 years. Project B requires an initial investment of $100,000 and is expected to generate cash inflows of $28,000 per year for 5 years. The company's cost of capital is 10%. Which project should the company choose based on the net present value (NPV) criterion?
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
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