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Capital Budgeting A company is considering three capital budgeting projects. Data relative to each is given below. Each project has a life of 5
Capital Budgeting A company is considering three capital budgeting projects. Data relative to each is given below. Each project has a life of 5 years. The company uses the Net Present Value (NPV) method to evaluate capital budgeting projects and its discount rate is 7.5%%. Initial cash outlay (cost) Cash inflows per year Residual value Project A -$5,250,000 Project B Project C -$6,000,000 -$2,600,000 $1,500,000 $1,800,000 $600,000 $ 0 $15,000 $80,000
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