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An engineering company normally expects a rate of return of 9% on investments. Two projects are available but only one can be chosen. Project A
An engineering company normally expects a rate of return of 9% on investments. Two projects are available but only one can be chosen. Project A requires an immediate investment of $6,800. In return, a revenue payment of $4,500 will be received in four years and a payment of $10,000 in nine years. Project B requires an investment of $7,200 now and another $3,000 in three years. In return, revenue payments will be received in the amount of $1,700 per year for nine years. Which project is preferable
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