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EDIT QUESTION A company has the opportunity to do any of the projects for which the net cash flows per year are shown below. The
EDIT QUESTION
A company has the opportunity to do any of the projects for which the net cash flows per year are shown below. The company has a cost of capital of 12%. Which should the company do and why? You must use at least two capital budgeting methods. Show your work.
ear | A | B | C |
0 | (-350) | (-250) | (-250) |
1 | 100 | (-50) | 100 |
2 | 100 | 100 | 100 |
3 | 100 | 100 | 100 |
4 | 100 | 100 | 100 |
5 | 100 | 100 | 100 |
6 | 50 | 100 | 100 |
7 | (-200) | (-200) | 0 |
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