Question
Campy company is evaluating two mutually exclusive proposals with the following information: ($1,000) The incremental outlay is $8,000 for each project Cash Out flow Project
Campy company is evaluating two mutually exclusive proposals with the following information: ($1,000)
The incremental outlay is $8,000 for each project
Cash Out flow Project A
Pessimistic 500 Most Likely 1,000 Optimistic 1,500
Cash Flow Project B
Pessimistic 900 Most Likely 1,000 Optimistic 1,100
Determine: a) Range of cash flows for each of the projects b) Assume a cost of capital of 10% and both project have a 20-year life. Determine their NPV c) What is your recommendation? Why?
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Renewable Energy Finance Theory And Practice
Authors: Santosh Raikar, Seabron Adamson
1st Edition
0128164417, 9780128164419
