Question
From the data below, which is better? Explain with NPV. (10 points) Cash Flows for Projects A and B.(Discount rate r or WACC is 10%).
From the data below, which is better? Explain with NPV. (10 points)
| Cash Flows for Projects A and B.(Discount rate r or WACC is 10%). Projects A (for two years) and B (four years) are mutually exclusive and will be repeated. | ||
|
| As CFs | Bs CFs |
| 0 year | -$100 | -$100 |
| 1 year | $50 | $30 |
| 2 year | $50 | $30 |
| 3 year |
| $30 |
| 4 year |
| $30 |
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The Handbook Of European Fixed Income Securities
Authors: Frank J. Fabozzi, Moorad Choudhry
1st Edition
0471430390, 978-0471430391
