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Max is considering two projects both of which have an initial cost of $13,000 and total cash inflows of $19,000. The cash inflows of project
Max is considering two projects both of which have an initial cost of $13,000 and total cash inflows of $19,000. The cash inflows of project A are $5,000, $7,000, $4,000, and $3,000 over the next four years, respectively. The cash inflows for project B are $9,000, $7,000, $1,000, and $2,000 over the next four years, respectively. Which project is selected if Max requires a 12% rate of return and has a required discounted payback period of 3 years
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