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Integrate Inc. with WACC of 10% must choose between two machines (mutually exclusive projects): A&B with the following cash flows: Year 0 1 2 3
Integrate Inc. with WACC of 10% must choose between two machines (mutually exclusive projects): A&B with the following cash flows:
| Year | 0 | 1 | 2 | 3 | 4 |
| A | -100,000 | $70,000 | |||
| B | -100,000 | $40,000 | $40,000 | $40,00 | 40,000 |
| A should be chosen | ||
| B should be chosen | ||
| We cannot say which project should be chosen. |
Both should be chosen
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