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Bigbox, Inc. is considering two, mutually exclusive projects.Project A is a five-year project that has an initial after-tax cost of $70,000 and future after-tax cash
Bigbox, Inc. is considering two, mutually exclusive projects.Project A is a five-year project that has an initial after-tax cost of $70,000 and future after-tax cash inflows of $35,000 per year for 5 year. Project B has an after-tax cost of $30,000 and future after-tax cash inflows of $25,000 per year for two years.If Bigbox uses the net present value method and has a discount rate of 10%. Which project should they choose?
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