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Angel Corp. is evaluating two projects. Each project will return a total of $800,000 to the company in cash flows over a three-year period. The
Angel Corp. is evaluating two projects. Each project will return a total of $800,000 to the company in cash flows over a three-year period. The cash flows for the two projects are as follows and each project needs to earn 3.2%:
Project A Project B Year 1 $300,000 $200,000 Year 2 $200,000 $200,000 Year 3 $300,000 $400,000 Total $800,000 $800,000 Which project represents the best investment for Angel Corp.?
a. All projects are equally good investments
b. Project A
c. Project B
d. There is not enough information to solve the problem.
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