Question
Firm AAA has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 29,500 $ 29,500 1 14,900 4,550
| Firm AAA has identified the following two mutually exclusive projects: |
| Year | Cash Flow (A) |
| Cash Flow (B) | ||||
| 0 | $ | 29,500 |
|
| $ | 29,500 |
|
| 1 |
| 14,900 |
|
|
| 4,550 |
|
| 2 |
| 12,800 |
|
|
| 10,050 |
|
| 3 |
| 9,450 |
|
|
| 15,700 |
|
| 4 |
| 5,350 |
|
|
| 17,300 |
|
(Please use financial calculator sovle question)
- At what discount rate would the company be indifferent between these two projects?
- Which project will be more favorable if the firm cant raise the money at this rate?
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Single Stock Futures For Small Speculators
Authors: Noble Drakoln
1st Edition
0966624564, 978-0966624564
