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Project A: Initial investment: $200 CF (years 1-5) -$30, $60, $70, $70, $40 Cost of capital: 15% Project B: Initial investment: $200 CF (Years 1-5)
Project A:
Initial investment: $200
CF (years 1-5) -$30, $60, $70, $70, $40
Cost of capital: 15%
Project B:
Initial investment: $200
CF (Years 1-5) 65, 10, 20, 10, 100
Cost of capitall: 15%
Suppose the two projects are contingent. According to NPV and IRR rules, which project should you accept?
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