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The net annual cash flows for a capital expenditure proposal can be classified as either conventional (normal) or nonconventional (nonnormal). The following table lists the
The net annual cash flows for a capital expenditure proposal can be classified as either conventional (normal) or nonconventional (nonnormal). The following table lists the net annual cash flows for five proposed projects.
Project | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 |
---|---|---|---|---|---|
A | $142,435 | $25,185 | $37,995 | $47,595 | $54,860 |
B | $127,775 | $35,790 | $18,800 | $18,775 | $18,425 |
C | $111,695 | $50,975 | $55,610 | $59,650 | $46,510 |
D | $110,125 | $24,760 | $57,500 | $61,445 | $66,505 |
E | $131,425 | $22,225 | $29,985 | $34,675 | $42,585 |
Which project or projects exhibit a nonconventional cash flow stream?
Project C only
Project D only
Project B, C, and D
Projects A and C
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