Question
Petco is a drilling company and currently looking at two drilling proposals. One project lasts for three years, costs $20M to start, pays back quickly,
Petco is a drilling company and currently looking at two drilling proposals. One project lasts for three years, costs $20M to start, pays back quickly, and has an NPV of $15M. The other project also costs about $20M to start, but has an expected life of seven years, takes much longer to pay back, and has an NPV of $17M, which proposal the company must choose and why?
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Unlimited Business Financing
Authors: Trent Lee, Dr Chad Lee
1st Edition
1934275050, 9781934275054
