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Bigbox, Inc. is considering two, mutually exclusive projects. Project A is a three-year project that has an initial after-tax cost of $80,000 arpl afer-tax cash
Bigbox, Inc. is considering two, mutually exclusive projects. Project A is a three-year project that has an initial after-tax cost of $80,000 arpl afer-tax cash infiows of $40,000 in year 1, $38,400 in year 2, and $25,600 in year 3. Project B has an after tax cost of $44,000 and future after-tax cash and $14,080 in year 2 If Bigbox uses the net present value method and has a discount rate of 4%, which project should they choose? 41,419 in year 1 Choose either A or B but not both Choose project A e Choose project B Choose both projects. You cannot determine which project is better since they have unequal lives
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