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Suppose that the projects are no longer independent; instead they are mutually exclusive. The manager has determined the appropriate discount rate to be 8% for
Suppose that the projects are no longer independent; instead they are mutually exclusive. The manager has determined the appropriate discount rate to be 8% for all of the recommend projects. The firm should accept and reject which project?
Year | A | B | C |
0 | -1200 | -1500 | -2500 |
1 | 600 | 1000 | 1000 |
2 | 600 | 600 | 1000 |
3 | 400 | 200 | 600 |
4 | 200 | 400 | 800 |
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