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pls hurryy Considering there are no budget constraints. You are given information on the following two projects: Project A: It has an initial investment of
pls hurryy
Considering there are no budget constraints. You are given information on the following two projects: Project A: It has an initial investment of 10,000 . Then cash flows for the subsequent 4 years are 5,000;6,000;7,000; and 8,000 . Project B: It has an initial investment of 1,000 . Then cash flows for the subsequent 4 years are 900,800,700, and 600 . Existing cost of capital is 10%. If the projects are mutually exclusive, which project(s) will you pick? Project A Neither of the two Project B Question 25 (2 points) Considering there are no budget constraints. You are given information on the following two projects: Project A: It has an initial investment of 10,000 . Then cash flows for the subsequent 4 years are 5,000;6,000;7,000; and 8,000. Project B: It has an initial investment of 1,000 . Then cash flows for the subsequent 4 years are 900,800,700, and 600. Existing cost of capital is 10%. If the projects are independent, which project(s) will you pick? Project B Both A and B Project A Discover Inc. wants to change their equipment to buy a more energy efficient one. They have two machines that they can choose one from, Machine A and Machine B. For both, you have to scrap them after their lifespan is over. Machine A: Upfront cost =50,000, annual net cash flow =14,000, lifespan =7 years, scrap value =0. Machine B: Upfront cost =50,000, annual net cash flow =20,000, lifespan =4 years, scrap value =5,000 Cost of Capital is 10%. Which Machine should they buy if it is just a one-time initiative? Machine A Neither of the two Machine B Step by Step Solution
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