Question
Given that the companys required return (WACC) is 9%, rank the two following projects: Use only one best method to rank the projects Project A
Given that the companys required return (WACC) is 9%, rank the two following projects:
Use only one best method to rank the projects
| Project | A | B |
| Project life | 12 years | 12 years |
| Initial investment | $1,200,000 | $1,500,000 |
| Annual operating cash flows | $180,000 | $225,000 |
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
