Question
Plz answer asap. Two mutually exclusive projects have projected cash flows as follows: YEAR PROJECT A PROJECT B 0 -10,000 -10,000 1 5,000 0 2
Plz answer asap.
Two mutually exclusive projects have projected cash flows as follows:
| YEAR | PROJECT A | PROJECT B |
| 0 | -10,000 | -10,000 |
| 1 | 5,000 | 0 |
| 2 | 5,000 | 0 |
| 3 | 5,000 | 0 |
| 4 | 5,000 | 30,000 |
Required rate of return is 10%.
Determine the NPV for each of the project. Which project will you select and why?
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Public Finance
Authors: Harvey Rosen, Robert Guell, Ted Gayer
9th Edition
0073511358, 9780073511351
