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I can't figure out the answer for Project Y. Please show your work. Thank you Labeau Products, Ltd., of Perth, Australia, has $11,000 to invest.
I can't figure out the answer for Project Y. Please show your work. Thank you
Labeau Products, Ltd., of Perth, Australia, has $11,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest in Invest in ProjectX Project Y $11,000 11,000 Investment required Annual cash inflows Single cash inflow at the end of 6 years Life of the project $ 4,000 $25,000 6 years 6 years The company's discount rate is 15%. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required a. Determine the net present values. Project X Project Y Net Present Value 4.138 b. Which alternative would you recommend that the company accept? ProjectX Project YStep by Step Solution
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