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Jekyll & Hyde Corp. is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows are given in the
Jekyll & Hyde Corp. is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows are given in the following table. Which project should be accepted, project 1 or project 2?
If u can, please use excel spread sheet
Year | PROJECT 1 | PROJECT 2 |
0 | $ (1,250,000) | $(1,250,000) |
1 | $ 250,000 | $350,000 |
2 | $ 350,000 | $350,000 |
3 | $ 450,000 | $350,000 |
4 | $ 500,000 | $350,000 |
5 | $ 750,000 | $350,000 |
Cost of Capital = | 15% |
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