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Let us assume Project A has cash flows of -$2,000, +$200, +$3,700 Project B has cash flows of -$2,000, +$2,000, +$1,480. The two projects differ
Let us assume Project A has cash flows of -$2,000, +$200, +$3,700
Project B has cash flows of -$2,000, +$2,000,+$1,480.
The two projects differ only in the timing of the cash inflows; their initial outlays and overall lives are similar. Both have a required rate of return of 9% per annum.
Which project should be chosen and why? Show your work.
Let us assume Project A has cash flows of
-$2,000,
+$200,
+$3,700
Project B has cash flows of
-$2,000,
+$2,000,
+$1,480.
The two projects differ only in the timing of the cash inflows; their initial outlays and overall lives are similar. Both have a required rate of return of 9% per annum.
Which project should be chosen and why? Show your work.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597707
