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As the director of capital budgeting for KU dairy, you are evaluating two mutually exclusive projects with the following net cash flows: Year Project A
- As the director of capital budgeting for KU dairy, you are evaluating two mutually exclusive projects with the following net cash flows:
| Year | Project A Cash Flow | Project B Cash Flow |
| 0 | -100,000 | -100,000 |
| 1 | 50,000 | 10,000 |
| 2 | 40,000 | 30,000 |
| 3 | 30,000 | 40,000 |
| 4 | 10,000 | 60,000 |
If KUs cost of capital is 15%, examine which project you would choose?
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
5th Edition
0131445650, 9780131445659
