Question
Project A B Project life 12 years 12 years Initial investment $1,200,000 $1,500,000 Annual operating cash flows $180,000 $225,000 Given that the company's required return
| Project | A | B |
| Project life | 12 years | 12 years |
| Initial investment | $1,200,000 | $1,500,000 |
| Annual operating cash flows | $180,000 | $225,000 |
Given that the company's required return (WACC) is 10%, rank the two following projects: Use a calculator to find out the NPV and to rank the projects.
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Finance For Normal People
Authors: Meir Statman
1st Edition
019062647X, 978-0190626471
