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Fobari Plc is considering two independent projects with the following cash flows. Year Project A Project B 0 -90591 -84652 1 57405 88567 2
Fobari Plc is considering two independent projects with the following cash flows. Year Project A Project B 0 -90591 -84652 1 57405 88567 2 11665 56283 3 118012 20431 The company's cost of capital is 8% per annum. What The Present Value of the cash flows for Project A ? What The profitability index for Project A? What The Present Value of the cash flows for Project B ? What The profitability index for Project B?
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Answers To calculate the present value of the cash flows for Project A we can use the formula PV CF ...
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Corporate Finance and Investment decisions and strategies
Authors: Richard Pike, Bill Neale, Philip Linsley
8th edition
1292064064, 978-1292064161, 1292064161, 978-1292064062
