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Lithium inc is considering two mutually exclusive projects, A and B. Project A cost $95,000 and is expected to generate $65,000 in year one and
Lithium inc is considering two mutually exclusive projects, A and B. Project A cost $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B cost $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. The firms required rate of return for these projects is 10%. The bet present value for project A is
A) $12,358
B) 16,947
C) 19,458
D) 26,074
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