Question
Atlantis Inc. is considering two mutually exclusive projects with the following cash flows: Year 0 1 2 3 4 Project A ($120,000) $60,000 $40,000 $60,000
Atlantis Inc. is considering two mutually exclusive projects with the following cash flows:
| Year | 0 | 1 | 2 | 3 | 4 |
| Project A | ($120,000) | $60,000 | $40,000 | $60,000 | $80,000 |
| Project B | ($100,000) | $60,000 | $50,000 | $0 | $0 |
If Atlantis accepts projects that pay back in two years or less, which should be undertaken?
| a. | Project A |
| b. | Project B |
| c. | Both projects |
| d. | Neither project |
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Finance At 40 Financial Intelligence
Authors: MOIRA O'NEILL Moira O'Neill
1st Edition
1408101114, 978-1408101117
