Ft. Collins Corp. is considering investing in either of two mutually independent projects, A and B. Project A requires an initial investment of $25,000; Project
Ft. Collins Corp. is considering investing in either of two mutually independent projects, A and B. Project A requires an initial investment of $25,000; Project B requires $35,000. Each projects cash inflows are 6-year annuities: Project As inflows are $6,000 per year; Project Bs are $8,000.
If Ft. Collins requires a 15% return on its investment, what minimum yearly cash inflow will be necessary for the company to go forward with Project B?
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Authors: Mike E. Miles, Laurence M. Netherton, Adrienne Schmitz
5th Edition
0874203430, 978-0874203431
