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The cash flows for projects A, B, and C are given below. The cost of capital for each project is 7.5%. If A and B
The cash flows for projects A, B, and C are given below. The cost of capital for each project is 7.5%. If A and B are mutually exclusive and C is independent, which project, or combination of projects should be accepted?
| Project |
|
|
Year | A | B | C |
0 | -$300 | -$300 | -$300 |
1 | 180 | 100 | 90 |
2 | 170 | 140 | 100 |
3 |
| 130 | 170 |
Question 3 options:
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