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Suppose a company must decide to invest or not in project A that has the following characteristics: Project A Project B Cost of equipment (investment)

Suppose a company must decide to invest or not in project A that has the following characteristics: Project A Project B Cost of equipment (investment) $720,000 Annual cash flow (year 2) $320,000 Annual cash flow (year 3) $620,000 Annual cash flow (year 4) $50,000 Assume an effective rate of 6% per year. Should the company invest or not and why?
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03) (20 pts) Suppose a company must decide to invest or not in project A that has the following characteristics: Project A Project B Cost of equipment investment) $720,000 Annual cash flow (year 2) $320,000 Annual cash flow (year 3) $620,000 Annual cash flow (year 4) $50,000 Assume an effective rate of 6% per year. Should the company invest or not and why

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