Question
Please help! Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are
Please help!
Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent.
| Initial Investment | Project A $350,000 | Project B $275,000 |
| Year | Inflows | Inflows |
| 1 | $140,000 | $190,000 |
| 2 | $165,000 | $150,000 |
| 3 | $190,000 | $125,000 |
| 4 | $100,000 | |
| 5 | $75,000 | |
| 6 | $50,000 |
NPV A :
NPV B :
EAA A :
EAA B :
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Finance A Quantitative Introduction Volume 2
Authors: Piotr Staszkiewicz, Lucia Staszkiewicz
1st Edition
0128027975, 978-0128027974
