Question
Suppose you have the following 2 projects with the following cash flows and 10% required return. 0 -4000 -6000 1 1500 2000 2 2000 3000
Suppose you have the following 2 projects with the following cash flows and 10% required return.
| 0 | -4000 | -6000 |
| 1 | 1500 | 2000 |
| 2 | 2000 | 3000 |
| 3 | 2000 | 1500 |
| 4 | 1500 | 2000 |
| 5 | 1500 | |
| 6 | 1500 |
What is the EAA of the best project? -714.36; 486.98; 589.77; or 652.36
Any hints/suggestions are welcome.
Thank you!!! :)
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Probability For Risk Management
Authors: Matthew J. Hassett, Donald G. Stewart
2nd Edition
156698548X, 978-1566985482
