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Better Health, Inc., is evaluating tow capital investments, each of which requires an up-front (year 0) expenditure of $1.5 million. The projects are expected to
Better Health, Inc., is evaluating tow capital investments, each of which requires an up-front (year 0) expenditure of $1.5 million. The projects are expected to produce the following net cash inflows:
year | project A | project B |
1 | $5000,000 | $2,000,000 |
2 | 1,000,000 | 1,000,000 |
3 | 2,000,000 | 600,000 |
What is each projects net present value(NPV) if the opportunity cost of capital is 10%? 5? 15%?
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