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Consider each of the after-tax cash flows shown in the table below. Suppose that projects B ad C are mutually exclusive. Suppose also that the
Consider each of the after-tax cash flows shown in the table below. Suppose that projects B ad C are mutually exclusive. Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000, payable at the end of each year for the remaining years of the required service period, which project is a better choice at 15%? Click the icon to view the cash flows for the projects. Click the icon to view the interest factors for discrete compounding when i = 15% per year. The present worth of project B is $thousand. (Round to one decimal place.) More Info $7,000 -2,500 -2,000 - 1,500 - 1,500 -1,500 -1,500 S5,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 -2,000 PrintDone
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