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Evergreen Corp is evaluating two new projects with the following net cash flows. The companys required rate of return on investments is 8%. PV of
- Evergreen Corp is evaluating two new projects with the following net cash flows. The company’s required rate of return on investments is 8%. PV of $1 (5%), PVA of $1 (5%), PV of $1 (8%), and PVA of $1 (8%). (Use appropriate factors from the tables provided.)
Year | Project X | Project Y |
0 | $(120,000) | $(90,000) |
1 | $30,000 | $20,000 |
2 | $40,000 | $25,000 |
3 | $50,000 | $35,000 |
4 | $60,000 | $45,000 |
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