Question
A firm is considering the following mutually exclusive projects: Year 0 1 2 3 Project A -2500 1500 ??? 1500 Project B -1500 1000 500
A firm is considering the following mutually exclusive projects:
Year
0
1
2
3
Project A
-2500
1500
???
1500
Project B
-1500
1000
500
1500
Assuming a rate of return of 10%, what must be the cash flow for Project A in year 2, for the firm to be indifferent for choosing these projects?
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
