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please answer all Chapter 11 1.) Emily's soccer Mania is considering building a new indoor soccer facility for local soccer clubs to rent and has
please answer all
Chapter 11 1.) Emily's soccer Mania is considering building a new indoor soccer facility for local soccer clubs to rent and has narrowed its options down to 2 projects. The first one, Project A, will require an initial cash outlay of $46,000 today and generate annual cash inflows of $17,000 per Years 1 through 3. In Year 4, the project will provide a cash inflow of $19,500. Project B will cost $50,000 today and will generate $15,000 for the first 2 years, then generate $14,000 and $24,000 for Years 3 and 4. Emily's require a 10% return for both projects. a. Determine which project Emily will choose if two projects are independent. (5 points) b. Which project will Emily choose if the two are mutually exclusive? (5 points) Step by Step Solution
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