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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 360,000 $ 45,000 1 35,000 23,000 2 55,000 21,000
Consider the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) | |||||
0 | $ | 360,000 | $ | 45,000 | |||
1 | 35,000 | 23,000 | |||||
2 | 55,000 | 21,000 | |||||
3 | 55,000 | 18,500 | |||||
4 | 430,000 | 13,600 | |||||
Whichever project you choose, if any, you require a 14 percent return on your investment.
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