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For this question, use the Universal Measure of Asset Value & Rate provided in the framework, i . e . , equation below and use

For this question, use the Universal Measure of Asset Value & Rate provided in the framework, i.e.,
equation below and use the assumptions below to answer Part 1(a) and Part 1(b).(This question is worth 10 points.Project 1 Assumptions
Initial (Up Front) Investment: $10,000
Cost of Capital (on Initial Investment): 10%
End of Year Project (Operating) Net Cash Flow
Year 1: $5,000
Year 2: $4,000
Year 3: $3,000
Year 4: $1,000
Project 2 Assumptions
Initial (Up Front) Investment: $10,000
Cost of Capital (on Initial Investment): 10%
End of Year Project (Operating) Net Cash Flow
Year 1: $1,000
Year 2: $3,000
Year 3: $4,000
Year 4: $6,750
Question 1 Part (a): In your own words, describe, qualitatively and quantitatively (using the framework), in
as much detail as necessary to persuade the instructor that you fully understand why you would or why you would not
move forward with Project 1 from a financial perspective on a stand-alone basis. (This part is worth 5 points.)
Question 1 Part (b): In your own words, describe, qualitatively and quantitatively (using the framework), in
as much detail as necessary to persuade the instructor that you fully understand why you would or why you would not
move forward with Project 2 from a financial perspective on a stand-alone basis. (This part is worth 5 points.)
SHOW ALL
QUALITATIVE THINKING PROCESS WOR

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