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can this be done on excel? 6. A company can pursue only one of two available projects, both of which require a $3 million investment
can this be done on excel?
6. A company can pursue only one of two available projects, both of which require a $3 million investment today. In project A, another investment of $2 million is required at the beginning of the second year, and three years of $2.5 million in year-end profits will start in the second year. In project B, another investment of $2 million is required at the beginning of the fourth year, and four years of $1.7 million in year-end profits will start in the first year. If the cost of capital is 12%, which project should be chosen? How much better is your chosen alternative? 7. A new marketing project requires initial research and development costs of $550,000 today with further investments of $100,000 and $75,000 in the fourth and sixth year, respectively. Initially the project will lose $50,000 in its first year and then earn profits of Step by Step Solution
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