Question
Consider the following three projects. Period Project A Project B Project C T=0 ($5,000) ($9,000) ($4,000) T=1 $2,000 $1,500 $900 T=2 $1,200 $2,500 $900 T=3
Consider the following three projects.
Period Project A Project B Project C
T=0 ($5,000) ($9,000) ($4,000)
T=1 $2,000 $1,500 $900
T=2 $1,200 $2,500 $900
T=3 $1,800 $2,500 $900
T=4 $1,800 $2,500 $2,500
T=5 $4,800 $4,500 $2,500
When you have only $18,000 to support the above projects, which project (or projects) should be chosen under NPV method and explain WHY? Use 8 percent discount rate.
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Cost Management Measuring Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan K. Wolcott
2nd Edition
978-0-470-7694, 0470769424, 978-0470769423
