Question
Siegmeyer Corp. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four
Siegmeyer Corp. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. Siegmeyers required rate of return is 8%.
Suppose Siegmeyer identifies another independent project with a net present value of $98,525.50. If neither project can be replaced, compared to the values calculated previously Siegmeyer should accept ________.
Project A | ||
Project B | ||
Both projects | ||
Neither project |
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