Question
Cash flows for 2 companies : Company A Year 0 = - 50,000 Year 1 = 30,000 Year 2 = 37,000 Year 3 = 28,000
Cash flows for 2 companies :
Company A
Year 0 = - 50,000
Year 1 = 30,000
Year 2 = 37,000
Year 3 = 28,000
Company B
Year 0 = -90,000
Year 1 = 45,000
year 2 = 55,000
year 3 = 50,000
Base on NPV with interest rate of 7% which one is a better option?
Please teach with workings too. Thank you so very much.
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
8th edition
134730364, 978-0134730363
