Question
Project A has cash flows of ?$92,000, $49,400, $27,200, $24,500, and $30,690 for Years 0 to 4, respectively. Project B has an initial cost of
Project A has cash flows of ?$92,000, $49,400, $27,200, $24,500, and $30,690 for Years 0 to 4, respectively. Project B has an initial cost of $50,000 and an annual cash inflow of $20,500 for four years. The required rate of return is 18 percent. These are mutually exclusive projects. Which project(s) should be accepted or rejected?
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Making Hard Decisions with decision tools
Authors: Robert Clemen, Terence Reilly
3rd edition
538797576, 978-0538797573
